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Posted Sun, 14 Aug 2022 11:50:18 GMT by KatieReid88
I want to give a gift of cash to a family member and then they intend to give me the money back in due course as a gift as well. Is this okay? How will this work in terms of my self-assessment (I am a sole trader). The amount in question would be about £7000.
Posted Mon, 15 Aug 2022 16:07:41 GMT by HMRC Admin 10
Hi
There are no income tax implications on the receipt of a cash gift unless the income generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here
www.gov.uk/apply-tax-free-interest-on-savings
and
Tax on dividends
There are no tax implications on the giving or receipt of cash gifts, but you may wish to speak to inheritance tax regarding any inheritance tax implications.
How Inheritance Tax works: thresholds, rules and allowances
and
Inheritance Tax: general enquiries  
Where a business makes a gift to someone, the gift cannot be allowed as a deductio against profits.
Specific deductions: entertainment: gifts: overview
Thankyou.
Regards.

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