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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4545
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I'm based in the UK and have a long term friend of 20 yrs+

Resolved Question:

HiI'm based in the UK and have a long term friend of 20 yrs+ (also based here) who has made his intention clear to gift me a substantial amount of money of £50K+ sometime next year when a property development he's involved in comes to fruition. The gift is intended to help out with my daughters' weddings as and when that happens.
Now I'm a glass half empty kind of guy by definition so I'm assuming that I'll be hit with a massive UK tax bill.Qu: Will I need to declare this to HMRC and be liable for some kind of tax if I receive the money ?Thanks
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

NO -- it does not work that way. In your case, when a friend gifts you any amount of money, it would be a "Potentially Tax Free" transfer for him IF HE SURVIVES 7 years or more after making such gifts and he will NOT be subject to any inheritance tax.

Now coming to you in specific such gift (cash or cash equivalents) are not your income and you will have not tax liability on this. HM Revenue & Customs does not treat a gift of cash as income so you won't be charged income tax on the £50,000. You will pay any tax ONLY WHEN and IF you derive any income from this.

I am sure this would help.

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Warm Regards,

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