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, I received a £100000 as a gift from my father. I deposited

Resolved Question:

Hello, I received a £100000 as a gift from my father. I deposited this money to my savings account. My question is please, do I have to pay income tax on this savings? I don’t mean income tax on interest but rather tax on the £100k I have in the bank. Many thanks.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

If the money received is a gift with no conditions attached, then the gift is free of taxation in the hands of the recipent. There is no tax on gifts received in the UK. You do not pay any income tax on this amount.

The interest earned on the capital sum would be chargeable to income tax.

I hope this is helpful and answers your question.
Customer: replied 1 year ago.

Thank you, that’s great. Just to expand and to be absolutely sure: the money was purely a gift and without any conditions attached what so ever. I’m a full time housewife and mother. I credited £15000 to my Instant ISA account and the rest £88000 to my Everyday Saver account.

Now if I understood correctly, I don’t have to pay any tax on this money no matter how many years it stays in my accounts. I will only have to pay tax on interest earned. Is this right please? Many thanks.

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.

The gift is free of any taxation in your hands.

The amount saved in Instant ISA account - interest received on this account will be free of tax.

Amount invested in the Everyday Saver account - your interest received will be taxed at basic rate of 20%.

I hope this is helpful and answers your question.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4786
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.

Best wishes.

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