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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15580
Experience:  International tax
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If i receive a gift of £40000 and place it into a savings account,

Customer Question

If i receive a gift of £40000 and place it into a savings account, what tax will i have to pay on it?
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
You would pay tax on any interest the £40000 earned after you received it.
If you are self employed,it is sensible to keep any evidence that it is a gift (for instance, an exchange of letters). If you are subjected to an enquiry later you would have proof that the gift was not part of earnings.
You are not taxed on the initial gift.