Cash Gifts and Benefits

If someone is receiving benefits and is being given cash gifts from a relative - do they have to declare this? Is there a limit to the amount they can receive before it affects their benefits?

Hi 
There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here:
Tax on savings interest
Tax on dividends
You would need to declare the income generated to the benefits office.
Thank you. 

Hi HMRC can you clarify that with the info you have given above that this means if you receive a cash gift and you are on uc you don’t need to tell uc people about it as long as it doesn’t generate interest or dividends. So for example if a person on uc gets a £100 each week from a family member they don’t need to tell the uc people about it as long as it is spent and doesn’t therefore generate any interest. Thanks

Hi,

Sorry, we can only answer HMRC questions on this forum.

Please contact the DWP for advice.

Thank you.