Money from overseas - taxable?

[weakestlink]

DMIL (from South Africa) has given us £3k to pay for DS nursery fees until he gets the free 15 hours and to put towards a new kitchen.
We have it in cash - if I pay it into the bank is it going to cause problems with HMRC? I don't need to pay it in as can pay nursery in cash and keep the rest "under the mattress" until we have saved enough for kitchen - but I would much prefer to pay it in.

If its a gift, then no, it's not taxable on you. You'll have to pay income tax on any bank interest as normal of course.

I think you can get up to £5k as a gift before taxman gets involved. Maybe more from family.

Fidol, I think you're perhaps thinking of inheritance tax. There are no tax implications of receiving a gift, whatever the amount (providing IHT doesn't become payable on it at a later date).

Great - thank you. Will pay it in today :)