Question for people who know about taxes 'n stuff....
 

Does anyone know if there is a limit to how much money you can receive/give to another person without being liable for paying tax on it?

You hear about lottery winners giving their kids etc. money, but is there a limit to how much you can give a person in one financial year?

Geezer

You can 'gift' what you like. The only problem that will arise is if you die within 7 years of doing so...

Simon.

But the recipient will pay tax on the 'unearned' income :(

Untrue.

D

So if someone won the lottery and gifted me a million pounds, I won't pay tax on it :confused:

Please explain.

I am basing my presumption on the budget spiel.

http://money.guardian.co.uk/thebudge...173766,00.html

You wouldn't pay tax on the gift rec'd, however you would then pay tax on any income resulting from the gift. (ie. bank int, dividends etc.)
The estate of the donor could be liable for tax if the donor dies within 7 (from memory ?) yrs.

The article, is about "gifts" with strings attached. For example passing a house on, whist still remaining the right to live in it without paying a market value rent.

From the article ...." The chancellor is determined to stop people removing assets from their taxable estate while continuing to enjoy all the benefits of ownership"

D

I never new that, I thought you had to declare it all to the tax man as income :)

There is a sliding percentage scale once a gift is given, the longer the giver survives the less the tax liability, if they die the day after the give it you, you are lible for the full capital tax gains burden (I think), not how it works with estates and IHT, but basically, if someone survives 5 years you can stop worrying so much.