Hello I am Freelance Buddhist Monk and registered in the UK as sole trader. A donation was given to a community account in Australia a year ago. I have decided to disrobe and come back to England. The person that gave the donation would like to gift me the money to support me. In Australia there is no money on Gifts.
In the UK when I get a donation I normally pay tax on that. I wondering if there is away legal way to make this gift - tax free it will be close 40UK pound. Otheriwse I was going to ask to split the donation over this tax year and the next. And find a way to legitimately use my tax allowance to reduce the tax bill
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Thank you is there some way I can absolutely make sure that I will not get taxed. The reason is that if I transfer the money know and later they say I need to pay tax, I will be have to pay tax on around roughly 30K - and I will have to now way to use my tax allowance.
I very much appreciate your answers yesterday and I'm left with a bit of doubt.
The money will be coming from a Community account - which is a not-for-profit account, not from a individual. As the money was given to the community account, I have asked the donor, if they are happy to agree to give the money to me, which they are and they are going to get a legal letter done.
So does the following still apply.
"As far as the person giving the gift is concerned, in UK Tax is would be regarded as a potentially exempt transfer for inheritance tax purposes. If the person making the gift is a Foreign National living in a foreign country then IHT implication would not be applicable."
What I take from this is that because the gift has come from abroad there IHT cannot be applied to it.
It such a large sum for me, I don't want to get taxed on it, or be aware of IHT issues.
Thanks very much for your help. I very much appreciate that