Tax on Money being gifted

Hi, I have seen a few times HRMC admin reply on these boards with " There are no income tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends." in regards to receiving large amounts of cash as a gift (£10k+) Does this mean if a family member gifts me £100,000 and I spend it all on things along the lines of Crypto, Premium Bonds, Non Dividend Stocks, gold etc that I wouldn't have to pay inheritance tax on this gift as long as the money was spent straight away (money spends less than 1 month in my bank) and none of these examples return interest or dividends? Thanks

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

Why would I need to do that if the question is about gifts and nothing to do with inheritance?

Not HMRC...because a gift of £100k is treated as a potentially exempt transfer for Inheritance Tax, and it only becomes exempt to IHT after 7 years. Should the person giving you the money not survive 7 years the money will be added back to their estate to calculate any IHT payable. If the person survived less than 2 years the estate is liable on the full amount of the gift, between 2 years and less than 7 then a tapered amount is added back.

Ah, see my mistake now. the admin said there was no income tax and that's what i thought the tax was on gifts. Ok thank you.

Feedback .

Correct, no income tax for you on receipt...only thing I'd say is in such circumstances many people keep the "potential" IHT to one side in case the giver passes within the 7 years, so as not to deprive the estate/beneficiaries in that situation...however, ultimately, if the giver has factored that in and/or everyone is ok with the situation ultimately those funds are yours to do with as you wish.

Hi reddev3,
If the individual making the gift is a UK resident, they may find that the gifts they makle may affect their estate for Inheritance Tax purposes.
Please have a look at the guidance here:
How Inheritance Tax works: thresholds, rules and allowances
Thank you. 

got it, thank you. Have a nice day