Gifted a car - does tax need to be paid to HMRC?

[GlassOfProsecco]

Last year, DP's parents gave him their old car, worth 6-7K, for free.

Should tax have been paid on this? Or declared to HMRC through self-assessment?

What are the implications? Thanks.

No you don’t need to pay tax on the gift (apart from car tax of course). When people talk about tax on gifts they’re talking about inheritance tax, which only applies if they die within seven years with an estate over the nil band (which can be a million quid for a married couple).

There might be capital gains tax implications if a gift had increased in value but not for a normal car. Best practice is to keep a record of any significant gifts made and their dates with your will. They’ve each got an annual allowance for gifts anyway, so this might be within that.

No one is going to be tracking this, keep hush