This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Gift from line manager

Curdorche
Posts:1
Joined:Wed Aug 26, 2020 5:58 pm
Gift from line manager

Postby Curdorche » Wed Aug 26, 2020 6:15 pm

Hi All,

Quick (hopefully) query:

I work for a Ltd company (company A), which was purchased 2-3 years ago by company B. My line manager, the managing director of company A, recently recieved an earnout payment as a result of the performance of company A.

He now wants to give me a personal gift of approx £30k. This would not be through PAYE or through the Ltd company, purely a personal gift from him to me.

Are there any tax implications that he or me need to be aware of, apart from inheritance tax if he passes away within 7 years? I have looked and gifts seem to be allowed with no tax implications?

Thanks

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Re: Gift from line manager

Postby Lambs » Wed Aug 26, 2020 6:38 pm

C,

I think if you ask HMRC the answer will automatically be that it arises from your employment and should therefore be taxable.

However, I believe there is an outlier tax case, whereby an employer made a substantial gift to a former employee purely out of the esteem in which he was held. It caused quite a stir at the time. I think the case is -

C Collins v HMRC FTT [2012] UKFTT 411

but I could not say for sure that it will help you without more research.

Kind regards,

Lambs


Return to “Income Tax”