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Posted Tue, 03 Jan 2023 16:25:42 GMT by raym Mallock
I am a UK tax payer & wish to make a cash gift of over £3000 to one of my children. I am aware that IHT will be applicable for 7 years after the gift. However, it has been suggested to me that I would also have a “Gift Tax” obligation of approximately 20% on gifting. Is this the case?
Posted Fri, 06 Jan 2023 12:04:11 GMT by HMRC Admin 20
Hi raym Mallock,

A cash gift is only taxable if it is earnings from employment or a benefit which is provided by reason if employment.
If it is neither of those there would be no tax due.
The recipient may have to pay tax on any income that arises from the gift, such as bank interest.

Thank you.

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