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Income Tax implications for gift to brother

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If I give a gift of money to my brother, will he be required to pay income tax on it? (he has other income which uses up his personal allowance), I know that I can give upto £3000 of gifts for inheritance tax purposes but I want to know what are the income tax implications for him.

And if i give him a regular gift every month, what are the tax implications? 

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By Matrix
15th Jun 2020 14:34

I would get bespoke tax advice if the amounts are big for both of your benefit. If it is a monthly allowance out of your monthly income rather than your capital then I think you could make this in addition to the £3k.

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By Paul Crowley
15th Jun 2020 14:50

'And if i give him a regular "gift" every month, what are the tax implications?'

Does 'gift' have a specific meaning. Usually when spoken and hands used it means the opposite of the word used. Are you paying him to do work?

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Replying to Paul Crowley:
RLI
By lionofludesch
15th Jun 2020 16:49

Quote:

..... and hands used ....

What - you mean the fingers waved in the air ?

I never get that. Do you ever see someone draw a question mark in the air ? Or any other kind of punctuation ? Crazy idea.

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Replying to lionofludesch:
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By Paul Crowley
15th Jun 2020 17:14

Why put quotation marks around the word GIFT

Noted OP has now ammended to delete them, probably for a good reason

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By SteveHa
15th Jun 2020 15:26

As Matrix has already said (quite clearly), get bespoke advice. The whole issue can get complicated quickly, and the reliefs available are by no means cut & dried.

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By Accountant A
15th Jun 2020 18:12

ijhb;i

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Replying to Accountant A:
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By frankfx
15th Jun 2020 17:22

In these Covid 19 lock down times meeting the man down the pub is problematic.

https://youtu.be/4Kwh3R0YjuQ

Check out the link.

Spot the accountant.

OP, I too would nudge you in direction of an advisor.

So easy to get the wrong impression on a forum, as in the above link.

This forum is primarily designed for accountants to check that the beans are in order, by size, colour and variety.
This attention to detail serves us, and our clients ,well.

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By Paul D Utherone
15th Jun 2020 18:17

For posterity

Quote:

If I give a gift of money to my brother, will he be required to pay income tax on it? (he has other income which uses up his personal allowance), I know that I can give upto £3000 of gifts for inheritance tax purposes but I want to know what are the income tax implications for him.

And if i give him a regular gift every month, what are the tax implications? 

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Replying to Paul D Utherone:
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By Paul Crowley
15th Jun 2020 19:30

That is as ammended
Original posting
And if i give him a regular "gift" every month, what are the tax implications?

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Replying to Paul Crowley:
By Paul D Utherone
16th Jun 2020 09:56

Yup was late to quoting this Mr Anonymous

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Replying to Paul Crowley:
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By Southwestbeancounter
16th Jun 2020 14:05

No wonder I couldn't keep up with the comments!

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Replying to Paul D Utherone:
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By Paul Crowley
16th Jun 2020 14:33

I have seen postings before where question is quoted at length before responding. I now understand why that happens.
Much appreciated

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By Paul Crowley
15th Jun 2020 19:39

Time to give up: it's just accountants talking to accountants. Anonymous not engaging, other than to edit out " " around the word gift

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Replying to Paul Crowley:
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By Tax Dragon
16th Jun 2020 07:13

Yes, without more information a meaningful answer is difficult.

@Sift.... this is one of the reasons why respondents, who want to help, get frustrated with this forum. And why "Anonymous" and his/her ilk sometimes receive short shrift - the longer bits of shrift get used up, as Paul's has been here.

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By Gerry Brown
16th Jun 2020 11:18

The receipt of a gift is not income for income tax purposes. The receipt of regular gifts is not income for income tax purposes.

Cash is not an asset within the ambit of capital gains tax,

Gifts will be potentially subject to inheritance tax (IHT) but there are a number of exemptions which will lessen the exposure to IHT.

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Replying to Gerry Brown:
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By Paul Crowley
16th Jun 2020 14:25

Provided that it is a gift, not a "gift" in exchange for........Who knows what?

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By Tax Dragon
16th Jun 2020 14:38

Should I withdraw "meaningful" and substitute "relevant"? (Though I'm not seeing an answer as meaningful if it's not relevant, I accept that others might take a different view.)

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