Mum has gifted me 20k, is tax due?

[MikeHunt79]

How did you gift £20k?

1000 £20 notes in a suitcase would be a nice thing to stick under the Chrstmas tree....

 

[Azza]

Your mum gifted me £20k as well... strange.

 

[Cosimo]

Hire me as your accountant and I’ll tell you.

 

[DJMK4]

1000 £20 notes in a suitcase would be a nice thing to stick under the Chrstmas tree....

I would quite happily take the suitcase without being under a tree

 

[Kazz]

 

[Durzel]

Can we get a :britboy: smiley please?

 

[nydryl]

Your mum accidentally me £20k yesterday.

 

[Dr House]

no tax due as long as as she does not die within 7 years leaving a estate worth over tax threshold

 

[Weaver]

As the title suggests.

If I do owe Mr Taxman some money for recieving this gift -- is this kind of a technicality that you wouldn't bother with as no-one actually pays it?

Or is me not paying it a serious case of tax fraud not worth the risk?

no tax due as long as as she does not die within 7 years leaving a estate worth over tax threshold

^^This. Broken down as;



If an unfettered gift is made during an individual's lifetime it is treated as a Potentially Exempt Transfer (PET). This means that it will leave the donor's estate if they survive for seven years. If the donor dies during the seven year period some, or all, of the gift is added back to their estate in computing its value for Inheritance Tax (IHT) at death. This is reduced in accordance with the following table:

0 - 3 years = 0%
3 - 4 years = 20%
4 - 5 years = 40%
5 - 6 years = 60%
6 - 7 years = 80%
7 years + = 100%

I’m more than sure that a one of cash gift is not considered an income by HMRC therefore you are not liable to be taxed on it. If I were you though I would discuss it with CAB just to make sure of both your and your mothers position on the matter.




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[SilverTongue]

However this is all assuming that it isn't the usual britboy bull**** which tbh sounds like it probably is.

surely if your mum was going to gift you £20k she would have researched all of this first :s

 

[mangobreeder]

its exempt from inheritance tax provided she does not die in the next 7 years

 

[Pestilence]

lolbritboy4321

 

[bloodiedathame]

Only £20k, she gave me more last night.

 

['Wes]

Only £20k, she gave me more last night.

ROFL

 

[Dr House]

its exempt from inheritance tax provided she does not die in the next 7 years

it still may be exempt within 7 years if she does not have a large estate.

 

[britboy4321]

However this is all assuming that it isn't the usual britboy bull**** which tbh sounds like it probably is.

surely if your mum was going to gift you £20k she would have researched all of this first :s

Not really. She's quite old and my dad is dead. Dumping money she can't spend herself apparently, she just wants to watch TV so why have loads wodja hanging around earning 1.5% before tax when it could be paying off a 3.65% mortgage tax free??

Tried to persuade her to buy a Jag with it instead .. but she's kinda old fashioned (frugal) about money so kinda won't spend it on something nice for herself ... :/

 

[PermaChanged]

lol Britboy

 

[SilverTongue]

Not really. She's quite old. Dumping money she can't spend herself effectively as my mortgage interest rate > he (after tax) savings rate.

well if thats the case you should have researched first, that way you won't gt bitten on the backside later down the line

 

[Beasty]

EDIT Aah sorry that was not britboy

 

[britboy4321]

britboy4321 you talk so much crap.

Tell me how to prove it to you if you're really that bothered! (You really shouldn't be! Besides .. 20K would be a pitiful amount to lie about. If I was going to lie, I'd have said 'Sell one of her £840,000 houses and give me the dosh'.)


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