My mum wants to giv me and my sista 10000 each how do i find out if we or she has to pay tax on it?

Question

My mum wants to giv me and my sista 10000 each how do i find out if we or she has to pay tax on it?

Answer 1

Other answers are vague guesses.

Your mum has an annual limit of £3000 which she can give tax free. The rest of the gifts will count towards her £365000 Inheritance Tax threshold if she dies within 7 years of the gift. This means that if her total estate is over £365000, including the £17000 she is giving to you, and she dies within 7 years of giving the money to you, her estate (not you) will be liable to Inheritance Tax on the whole lot. You will not be liable to any kind of tax on this gift.

Answer 2

it is a gift from your mum so you wont have to pay Tax

Answer 3

If you are in the UK -

You will have to pay tax on it if both these things happen:

1)your mum passes away (though hopefully this really won't happen!) within 7 years of giving you the money and

2) her estate is subject to inheritence tax

if this does happen you'll have to pay inheritence tax on the 10000.

I think she can give you up to 3 k as a gift completely tax free, and 5k for a wedding gift tax free. Any amount over 3 k that isn't a wedding present is subject to inheritence tax,  Think the threshold at the moment for Inheritence tax is 260k, so basically if your mum gives you this money and then dies within 7 years, leaving more than 260k in her will you and your sister will both have to pay tax on your 10k gift.

Answer 4

personal gifts are tax free.  it goes up to something like £130,000 a year and after that tax is applicable. so just bank it and enjoy. contact revenue if you are worried.

Answer 5

give it as a gift christmas is coming up

Answer 6

No tax on the gift. Except maybe IHT (Inheritance Tax) This would be a lifetime gift so if your mum died before the next 7 years the gift might be liable to IHT

Answer 7

Check tax allowances at Inland Revenue website. There are special circumstances - the normal limit is just £3000 pa, free of tax. If she dies within 7 years of making the gift  (God forbid) any amount over this could be subject to inheritance tax, depending on the size of the estate.

Answer 8

If your mum gives you money as a gift however much the amount you or mum do not have to pay any tax its a gift thankfully were still able to give and recieve one without paying anything other than a thank you

Answer 9

Even fengirl got this one wrong!! (IHT limit is £312,000).

There is no tax due now.

IF your mother dies within the next seven years AND her estate is more than the IHT threshold at that time, then part of the gift may be taxable. The amount taxable will reduce at 20% per annum from 2010.

Answer 10

she doesn't have to pay tax on it no. If she were to die within 7 years of making the gift then it could be taxed against her estate