How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17124
Experience:  International tax
Type Your Tax Question Here...
TaxRobin is online now

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.
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.