Question
What is the maximum cash gift I can receive from my parents before being liable to income tax. I am a 40% tax payee??Answer
You can receive as much from your parents as they wish to give you, without any tax liability.
Of course, any interest or gains you earn from the money once it's yours will be taxable as normal. So, for example, if you put the money in a savings account the interest will be taxed at 40% (or 50% if the interest pushes your income into the top rate band).
If your parents live for at least 7 years after making the gift it will fall outside of their estate for inheritance tax purposes, although they can gift up to £3,000 a year which will fall outside of their estate immediately.
What is the maximum cash gift I can receive from my parents before being liable to income tax. I am a 40% tax payee??Answer
You can receive as much from your parents as they wish to give you, without any tax liability.
Of course, any interest or gains you earn from the money once it's yours will be taxable as normal. So, for example, if you put the money in a savings account the interest will be taxed at 40% (or 50% if the interest pushes your income into the top rate band).
If your parents live for at least 7 years after making the gift it will fall outside of their estate for inheritance tax purposes, although they can gift up to £3,000 a year which will fall outside of their estate immediately.
Read this Q and A at http://www.candidmoney.com/questions/question682.aspx
No comments:
Post a Comment