Gift

[x5x3]

If I want to make a gift of cash - say £5K to a friend (i.e. not an immediate family member) can someone please advise if there are any tax implications for them or myself?

Please assume I live for at least 7 years - i.e. there are no inheritance tax issues.

[PurpleMoonlight]

Nope, you can do what you like with your own dosh (assuming you are not about to declare bankruptcy).

[x5x3]

PurpleMoonlight said:

Nope, you can do what you like with your own dosh (assuming you are not about to declare bankruptcy).

thanks - and there is no impact tax wise for him/her - they do not have to declare the money?

[Eric Mc]

Not if it is a genuine gift.

[x5x3]

Eric Mc said:

Not if it is a genuine gift.

interesting - what defines if a gift is genuine or not?

I'm purely guessing but if it were from employer to employee then that could be questionable - but are there rules?

[Simpo Two]

I'm open for gifts, if it helps anyone.

[Eric Mc]

x5x3 said:

Eric Mc said:

Not if it is a genuine gift.

interesting - what defines if a gift is genuine or not?

I'm purely guessing but if it were from employer to employee then that could be questionable - but are there rules?

The definition of a gift is quite straightforward and it is exactly what you would expect. The giving of money or money's worth to someone purely out of the goodness of your heart. In other words, you don't expect anything in return - apart from thanks perhaps.

You are not paying someone because they've performed a task for you.

You are not paying them because they've sold you something.

And you are relinquishing any rights you might have had over the asset you are giving away i.e. there is no reservation of title.

[x5x3]

Eric Mc said:

x5x3 said:

Eric Mc said:

Not if it is a genuine gift.

interesting - what defines if a gift is genuine or not?

I'm purely guessing but if it were from employer to employee then that could be questionable - but are there rules?

The definition of a gift is quite straightforward and it is exactly what you would expect. The giving of money or money's worth to someone purely out of the goodness of your heart. In other words, you don't expect anything in return - apart from thanks perhaps.

You are not paying someone because they've performed a task for you.

You are not paying them because they've sold you something.

And you are relinquishing any rights you might have had over the asset you are giving away i.e. there is no reservation of title.

thank you for the clarification - much appreciated.