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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4191
Experience:  FCCA FCMA CGMA ACIS
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My daughter will live in a property I own. There will be no

Customer Question

my daughter will live in a property I own. There will be no rental contract and no rent per se. If she gives me a gift of £3000 every year would that be classed as tax avoidance and be deemed as rent not declared as income?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. 3K is the annual limit for a gift which will not impinge of the donor's Inheritance tax (IHT), the UK having no Gifts Tax regime. This is tax avoidance, which is legal. I do hope that my reply has been of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
Customer: replied 1 year ago.
i dont have a follow up question, but a comment. I found the answer a bit ambiguous. I didn't ask about inheritance tax. I already knew that was the limit for that. I was therefore a bit concerned that you did not understand my question properly. I asked whether charging no rent and then receiving a £3000 gift from my daughter would count as tax evasion. I took your answer to be that it would be tax avoidance and therefore legal. Which is what I wanted to know, thanks. If your answer had been 'This is tax avoidance, not evasion, and is legal. Any sum can be gifted, but if it is more than £xxxx it would be taxable in these circumstances', then I would have rated your answer 5start.
Customer: replied 1 year ago.
This was intended as a constructive criticism!
Richard
Expert:  bigduckontax replied 1 year ago.
I did understand your question, Richard. My answers frequently include additional, relevant information as they did in this case. Thank you for your comments, gratefully received.