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Probably a stupid question but if you were to receive a 6.5k cheque as a gift do you have to declare it?
TIA
Only if the person who gives it to you dies in the next 7 years, and qualifies for inheritance tax iirc
not as far as i know; only situation where it could be is if it's gifting to avoid inheritance tax and they don't last I think it's 7 years afterwards.
https://www.moneyadviceservice.org.uk/en/articles/gifts-and-exemptions-from-inheritance-tax
I think the limit is £3K...
might want to check with CAB
I guess it'd depend on who the gift was from!
Cheers.
So looking at the links, if a persons estate is less than 325k there is no inheritance tax to pay and if it was higher than that then the tax on the 'gift'is pro-rata for up 7 years if the person dies?
Gift would be from a parent.
The £3000 exemption is for the giver and can be carried forward one year meaning a single gift of £6000 can be immediately and unconditionally exempt from inheritance tax. Beyond that, keep records and keep them in good health tho in practice I bet no-one would catch such a small transgression.
The way I've read that, if less than £325k is given away then no inheritance tax is payable?
depends what the estate (plus any PETs added back in, pro rata) would be at time of death - rather than what's given away..
Talking hypothetically what about gifts to friends if you won the lottery and wanted to spread the love a little? It's not inheritance and it's not income.
I know I could google it but well . . . . this is STW. ;o)
I caved and looked it up inheritance tax rules apply whatever it seems . .
Speeder, I am your new best friend. Hi 😀
Speeder, it is indeed inheritance (for the recipients), just as much as if you'd earnt it.
As long as Speeder doesn't die within the 7 years though it's not classed as part of his estate so isn't subject to inheritance tax
Can't you put in trust to get round the 7 years thing (if you think you're going to wrap the porsche round a tree), obviously they can't spend it for what ever the period is.