Cash Gift

groundy
groundy Registered Posts: 495 Dedicated contributor 🦉
in General accounting discussion
I have a client who's sister is looking to gift her £10,000. I know the rules on parents and gifts to children but can't find anything on gifts between sisters.

Just wondered if anyone knew of any tax implications on both the donee & donor.

Cheers

Comments

  • Fireraiser
    Fireraiser Registered Posts: 91 Regular contributor ⭐
    It's just under the CGT allowance limit, so I don't think there's a problem. That is assuming that you're client's sister hasn't made any other chargeable gains in the tax year.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    Why would CGT be an issue? Surely it's a transfer for IHT purposes that is exempt as long as the donor lives a further 7 years?

    I don't remember anything about gifts being taxable, and I studied ATT personal tax earlier this year. Please let me know if I'm misguided....
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    I thought IHT would only be applicable, cash is unlikely to incur CGT or so I thought.

    Therefore as Monsoon stated only the 7 year rule applies.
  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    Cheers for ther replies IHT was my first thought but so use to parents gifting to children not a sisters gifting before.

    Thanks again for confirming what I thought.

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