Ask an UK Tax Question, Get an Answer ASAP!
Hi Its MamaTax Here!
Thanks for the question.
You can either gift the cash or loan it to him - both have no tax implications in UK.
However if you loan him with interest, then you will be taxed on the interest earned.
There is no gift tax in UK. However there is inheritance tax which in your case applies if you are to die within 7 years of gifting the cash. The the recepient may be charged inheritance tax if your total estate is over £325k.
However should this period pass (ie 7 years), then there is no tax implications whatsover.
So if i give my friend the money, there is no tax to pay from either of us?
unless i die within 7 years, in which case he has to pay tax?
Yes. subject to my point above...regarding 7 years.
ok. thank you