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Where Taxpayers and Advisers Meet

Receiving gift out of income

riccardob
Posts:130
Joined:Sun May 29, 2011 10:02 am
Receiving gift out of income

Postby riccardob » Tue Oct 05, 2021 11:53 am

Hello,

I would like to know if when receiving gifts out of income from a parent I need to pay tax on said amount.
Also am I free to invest the amount into my personal SIPP?

Regards,

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Receiving gift out of income

Postby Jholm » Tue Oct 05, 2021 3:27 pm

No tax due upon receipt. Possibly IHT due if the person gifting dies within 7 years and has exceeded their nil rate band already. However, assuming the gifts are exempt as 'gifts from regular income', then no IHT issues.

Re: pension, you can contribute from these funds but need to be mindful that the gross amount saved does not exceed your relevant earnings (which will vary depending on your income sources).

See: https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100

riccardob
Posts:130
Joined:Sun May 29, 2011 10:02 am

Re: Receiving gift out of income

Postby riccardob » Tue Oct 05, 2021 9:35 pm

Thanks


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