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.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7791
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am going to receive a gift of £100k cash from a trust, it

Customer Question

Hi, I am going to receive a gift of £100k cash from a trust, it say the gift will be subject to tax and NI, what value will be deducted approximately.
JA: Which tax year is the deduction for?
Customer: It will be 2019/20 tax year
JA: Anything else you want the Accountant to know before I connect you?
Customer: no
Submitted: 11 days ago.
Category: Tax
Expert:  taxadvisor.uk replied 11 days ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 11 days ago.

Thank you for your question.

A recipient of gift receives it free of any tax in the UK as there is no gift tax in this country.

If you are receiving income from a trust then it would be subject to income tax but no national insurance is deducted.

More information on tax rates for different types of trust income is covered here

https://www.gov.uk/trusts-taxes/trusts-and-income-tax

My aim is to give you a professional service. I hope this is helpful and answers your question.
Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

 

Customer: replied 11 days ago.
This isn’t very clear what I would be deducted, can you clarify please.
Customer: replied 11 days ago.
It’s not income but a gift.
Expert:  taxadvisor.uk replied 10 days ago.

Thank you for your reply.

If it is a gift then you should not pay any tax on it as gifts are free of tax as I stated in my last posting.

There is no gift tax and you don't report the gift on your tax return.

I hope this is helpful and answers your question.

Customer: replied 10 days ago.
What tax will the trust have to pay?
Expert:  taxadvisor.uk replied 10 days ago.

Thank you for your reply.

As I am occupied with other issues, I will opt out and let another expert help you. I am sorry for that.

Best wishes.

Expert:  bigduckontax replied 10 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

 

That depends on the construction of the trust.