Cash Gift from parents

A question about : Cash Gift from parents

I am about to receive a cash gift from my parents of Ј100,000.

From an IHT perspective I fully understand that as long as they live 7 years this cash will not form part of their estate and will therefore be free from IHT.

However, as this is a gift to myself, Should I be paying income tax on this money ?

I fully understand I will have to pay tax on the savings that this cash generates but the income tax situation is a little confusing, any help/advice appreciated.

regards

Jessmjc

Best answers:

• No you will not have to pay income tax on the gift. You would only fall into problems if you used the money to buy an item which your parents then used (eg a house). Then you may be caught by the pre-owned assets legislation.
• You lucky git!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !
• Does this not fall outside the limits of gifts to me made to relatives?
• Are you female and single?
  ;-)
• I'm sure there is an income tax rule that might come in to play here, which arose as a result of fathers gifting their ex wives substainence money.
  If "it isn't in your usual lifestyle" to receive such large sums, then I believe it might be subject to Income Tax. I'm guessing it's an attempt to stop money laundering? Again, knowing me I'm completely wrong!
• I have a query...I am getting married in July...My future father in Law who lives in Germany wants to make a cash gift of Ј5000 into my account towards organizing the wedding in the UK...Do I have to pay tax on this amount? what are the implications?
• Individuals are not normally liable to tax on the receiving of gifts (cash, shares, houses etc), whether tax becomes an issue depends on how those gifts (assest) are used.
  If those assets are used to generate income, eg bank interest, dividends, business profits then that income is taxable . If you sell or give away any of those assets that are classified as taxable then any (capital) gains will be taxable - cash is not taxable.
  Just to mention one point about Inheritance Tax, it is normally payable by an individual where the gift is made to them within 7 years of the donors death and they have agreed to pay the tax due.
• Not quite sure what point you are making but apologies if it is not to your liking - maybe I have not got to grips fully with forum etiquette, I am a new member. I was not aware that there was a 3 month old thread, questions and comments were put and I wanted to contribute an answer. If this ussue has been previosuly dealt with (as you suggest) then why are people asking the questions thay have?
• Just a final thought - my late grandmother tried to give everything away before she died and in her will; she must have never realised that there was a chunk left to the tax man and that he was first in line and nobody got their shares until the tax man had been given his dues.
  It caused certain conflicts within the family as to how the tax would be paid.
• Lucky, lucky guy (or girl?)..
• my father is very ill and wants to sort things out before it is too late. He just sold his house and wants to give money to me and my siblings so we could buy houses for us. He lives abroad and UK IHT should not apply here. Will I have to pay any tax here?