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Money gift from relative what tax implications are there?

(3 Posts)
Ooogetyooo Sat 29-Aug-15 22:14:10

A close member of the family wishes to gift me some money ( 6 figure sum)
and having looked into it albeit briefly it seems there is a limit of 3k per year, have I got that right? What is the best way for us to proceed?

LIZS Sun 30-Aug-15 07:29:14

The tax issue is if the person donating dies within 7 years. If so the amount over and above the allowances (ie. 3k pa, for wedding etc) would be subject to inheritance tax as if it were still part of the estate. The liability is the estate's not yours personally. There might also be an issue if the person needs benefits or goes into a care home in which case gifting such a sum might be seen as a deliberate deprivation of assets.

riksti Sun 30-Aug-15 07:35:26

There is no tax while the gift giver is alive but if he/she dies within 7 years of giving the gift AND the gifts he/she has made in those 7years exceed the nil rate band (currently £325k) then there may be inheritance tax to pay. And the part of inheritance tax relating to your gift needs to be paid by you, not the estate.
Some info here - www.gov.uk/inheritance-tax/gifts

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