Large transfers

[lostinthoughts]

If I were to receive a large amount of money into my bank account (gift from relative) and then transferred it straight out to pay for building works, would there be any tax implications for me? Or any questions raised by my bank?

Bump

We've done similar and not been a problem (I mean like 10k from an immediate relative in UK). Mortgage companies might want an explanation if you are applying for a mortgage in the next few months but that's the only thing I can think of.

Depends if you are claiming benefits when this could be seen as a deprivation of assets when they looked at your accounts.

It doesn't matter how fast you take it out - there will be a record of receiving it and then spending it.

Tax implications no.

Benefits etc implications probably.

Transferring out can be tricky depending on how large you are talking about- eg at Barclays my app is limited to 10k per day computer login to website is 50k per day.
Any more than that you need to go into the branch and authorise in person with ID.

If the person giving the gift dies within 7 years, the gift will be included in inheritance tax calculations and if the estate doesn't have enough money to pay, you would be expected to.

Depends on the amount. Might be worth googling potentially exempt transfers (PET). There is a 3k annual gift allowance per year where no tax is payable. I believe you can roll the allowance from the previous year if you have not used it - so potentially ok if £6k or less for example.

Aside from this, no tax is usually payable if the donor doesn’t pass away within 7 years. I’m not an expert though so worth doing some more research.

Thanks all. That's what I thought, just an inheritance tax implication as far as I can work out, which I'm obviously hopeful won't happen in the next 7 years.