Tax advice on Large Cash Gift ?

[RubyBlueberry]

My fabulous Gran has sold her house and given my sister and I £40k each towards buying our first houses. I am over the moon with this, as perviously we could only afford a 1bed flat and now we are buying a house with garden for DC's. yay!

Am just wondering when I go to do my tax return this year, what do I declare it as?
Do I declare it as being gifted to both of us or just me? Will it affect my child benefit and tax credits?

And does she declare it as a gift?

She can give you each £3k without attracting tax.

Anything above that (except in a few special circs, like wedding presents) is taxable IF she dies in the next seven years. If she lives for another 7 years, then there is no tax to pay.

I believe the advice is to make a record of it - both she and you - but if she survives for 7 years there is no tax to pay. It won't affect your child benefit, that is non-means-tested.

JSA - well, it would take you over the allowed savings, but I don't know what you do if it comes in, then you spend it, IYSWIM. It's not savings then! I would take advice on that.