If my mother gifts me money

[123george321]

My mother wishes to gift me money say 60K, will this be subject to tax only only should she die within 7 years of the transfer?
Would this require notification in her and my tax return?

[deanshepherd]

You are correct.

There will be no tax to pay unless she dies within 7 years of the gift.

No disclosure required on either of your tax returns.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

[Lee Young]

In fact if your mother were to die within 7 years of the gift it would simply use up the first part of her available nil rate band, so technically even then there will be no tax to pay on the gift.

[maths]

No inheritance tax to pay on the gift as both respondents above state.

One small point. Both respondents have implicitly assumed that in the 7 years prior to this gift of £60K your mother has not made other gifts. If she has, depending upon the amounts, there may be an iht liability on the £60k if death occurs within 7 years of making it.