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
Inheritance Tax is a tax on the estate, property , money and possessions of someone who has died.
There is normally no Inheritance Tax to pay if the value of the estate is below the threshold of £325,000.
Inheritance Tax is only due when a person's estate is worth over £325,000 when they die, or if the person who died gave away more than £325,000 in gifts in the 7 years before they died.
Gifts made in the last 7 years before someone dies, use up the £325,000 tax free allowance first, but if the gifts received are less than the £325,000 Inheritance Tax free allowance, any unused threshold can then be used by the estate of the person who has died.
If the person who died owned their home, or a share in it, the tax free threshold could be increased to £500,000.
You can find out more information here:
Work out Inheritance Tax due on gifts
Thank you.
