Gifts

[RedEvo]

If I take ten grand out of the bank, from my personal account, and give it away to 10 people, a grand each, who is liable to pay tax?

Me?
The recipients?
Nobody?

cheers

d

[Alvin]

Not sure on this one I heard that over a certain amount cash withdrawl the banks tip the tax man off in case of money laundering.e.t.c.

If you give it to me I promise no one will pay tax.

Alvin

[Peter W]

If it is a genuine no-strings gift, then the only tax that might be relevant is inheritance tax, and then only if you die within 7 years of making it.

[RedEvo]

If it is a genuine no-strings gift, then the only tax that might be relevant is inheritance tax, and then only if you die within 7 years of making it.

I was shouted down by someone claiming the person receiving the money would be liable to pay income tax on it. My understanding was as you have stated.

I believe the law/rules state a person can gift £3k a year (total, not per gift) with no inheritance tax liability with an unlimited amount falling into the 7 year rule.

The main reason for asking was with respect to income tax liability on the recipient on which point I argued there was none, but he who shouts loudest and all that ......

d

[James Smith]

You would have paid the income tax/CGT when you earned it.

If its a genuine gift then no taxes arising so long as you avoid walking out in front of buses for the next 7 years.

If the "gift" is in lue of services, then different story. That is to say you cant "gift" your builder £1,000 for fixing your leaking roof as its not a gift.

[RedEvo]

You would have paid the income tax/CGT when you earned it.

If its a genuine gift then no taxes arising so long as you avoid walking out in front of buses for the next 7 years.

If the "gift" is in lue of services, then different story. That is to say you cant "gift" your builder £1,000 for fixing your leaking roof as its not a gift.

Thanks, that was my understanding and I'm now looking forward to putting my friend straight

d

[RedEvo]

If it is a genuine no-strings gift, then the only tax that might be relevant is inheritance tax, and then only if you die within 7 years of making it.

Who would be liable for this? Me?

cheers

d

[Peter W]

Well, you would have 'expired', but the tax would be payable by the estate that you leave.

[accountantpete]

I was shouted down by someone claiming the person receiving the money would be liable to pay income tax on it. My understanding was as you have stated.

I believe the law/rules state a person can gift £3k a year (total, not per gift) with no inheritance tax liability with an unlimited amount falling into the 7 year rule.

The main reason for asking was with respect to income tax liability on the recipient on which point I argued there was none, but he who shouts loudest and all that ......

d

You posted this at half-past six in the morning - had you been up all night worrying about it?

[RedEvo]

No! Yes...... No, I mean yes......eh........I don't know...... {nurse, the screens}

d