Stewart454 Posted March 10, 2014 Share Posted March 10, 2014 Hi....We have been gifted a decent amount of money by my wife's parents. I presume we'll have to declare this come tax return time? If it is taxable then what percentage will be taxed?:twitcy: Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 10, 2014 Share Posted March 10, 2014 I have moved your post to money and finance,. Welcome to the forum. Link to comment Share on other sites More sharing options...
carlhall Posted March 10, 2014 Share Posted March 10, 2014 You need to consult a professional but I do not think it would be taxable as its a gift and not earnings. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted March 10, 2014 Share Posted March 10, 2014 Cannot be definitive when it comes to Australia but you don't pay tax on cash gifts in the UK and I would expect that to be the same in Oz. In the UK you might have to provide evidence of the origin of the money if asked but provided that you do it is not taxable. The only issue is for IHT (Inheritance Tax) but provided the gifter does not die within 7 years of making the gift then IHT will not apply. I am assuming that the gift exceeds the IHT exempt amount. Link to comment Share on other sites More sharing options...
abz123 Posted March 10, 2014 Share Posted March 10, 2014 You need to consult a professional but I do not think it would be taxable as its a gift and not earnings. I agree with the getting advice bit. Obviously if you bank it and earn interest then Mr ATO will want the interest declared on your tax return. Link to comment Share on other sites More sharing options...
Rupert Posted March 16, 2014 Share Posted March 16, 2014 Hi....We have been gifted a decent amount of money by my wife's parents. I presume we'll have to declare this come tax return time? If it is taxable then what percentage will be taxed?:twitcy: It is not income it is a gift ... so not taxable. The tax implication is that, should the parents both pass in next seven years, the gift needs to firm part if their estate and be subject to inheritance tax. This is on a sliding scale, so would be all of it tomorrow but only a small portion in six years eleven months. Link to comment Share on other sites More sharing options...
Ellie 2 Posted March 18, 2014 Share Posted March 18, 2014 There is no inheritance tax in Australia. You would be liable, as stated earlier, for tax on any interest gained. Link to comment Share on other sites More sharing options...
Rupert Posted March 18, 2014 Share Posted March 18, 2014 There is no inheritance tax in Australia. You would be liable, as stated earlier, for tax on any interest gained. Whether there is inheritance tax or not in Australia is irrelevant as the parents are in UK. Inheritance tax is applied to the estate, it is not a tax on the person receiving it and therefore the location of person receiving it is not relevant. Link to comment Share on other sites More sharing options...
jjgibbs Posted March 18, 2014 Share Posted March 18, 2014 Erm sorry but in the uk ALL income is taxable full stop weather gift or not it "should" be declared and taxed accordingly in most if not all cases it is not but all income is taxable Link to comment Share on other sites More sharing options...
Rupert Posted March 18, 2014 Share Posted March 18, 2014 Erm sorry but in the uk ALL income is taxable full stop weather gift or not it "should" be declared and taxed accordingly in most if not all cases it is not but all income is taxable This is not income, it is a gift. And no it is not taxable. Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 18, 2014 Share Posted March 18, 2014 This is not income, it is a gift. And no it is not taxable. Afaik Rupert is correct and the only tax you would be liable for would be on interest earned Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 18, 2014 Share Posted March 18, 2014 @Alan Collett would be the best person to confirm this with, but I think you will find Rupert is right Link to comment Share on other sites More sharing options...
jjgibbs Posted March 18, 2014 Share Posted March 18, 2014 SORRY ALL INCOME IS TAXABLE. If I gave you 5 quid as a gift that is an "income" that is taxable The fact that you declare it or not that it is a transaction is another story and the tax mans only consern is ALL income is taxable it up to you to tell the truth. QUOTE=Rupert;1936468444]This is not income, it is a gift. And no it is not taxable. Link to comment Share on other sites More sharing options...
wrussell Posted March 18, 2014 Share Posted March 18, 2014 Hi....We have been gifted a decent amount of money by my wife's parents. I presume we'll have to declare this come tax return time? If it is taxable then what percentage will be taxed?:twitcy: The amount you described is not assessablbe for taxation purposes. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted March 18, 2014 Share Posted March 18, 2014 SORRY ALL INCOME IS TAXABLE. If I gave you 5 quid as a gift that is an "income" that is taxable The fact that you declare it or not that it is a transaction is another story and the tax mans only consern is ALL income is taxable it up to you to tell the truth. No a gift is not taxable income. Earnings are taxable, gifts, gambling wins and prizes are not. Plenty of examples where income is not taxable. Please do not try to give advice if you have no knowledge of the subject. As stated previously the only issue to potentially consider is Inheritance Tax for a gift. Link to comment Share on other sites More sharing options...
Notts Posted March 18, 2014 Share Posted March 18, 2014 SORRY ALL INCOME IS TAXABLE. If I gave you 5 quid as a gift that is an "income" that is taxable The fact that you declare it or not that it is a transaction is another story and the tax mans only consern is ALL income is taxable it up to you to tell the truth. Not true. For example pay from the Defence Force reserves is exempt (i.e. not taxable) and income purely of a domestic nature (e.g. pocket money) is not taxable. As has been said several times already, gifts are not income for tax purposes. Not all receipts are income. Link to comment Share on other sites More sharing options...
Rupert Posted March 18, 2014 Share Posted March 18, 2014 SORRY ALL INCOME IS TAXABLE. If I gave you 5 quid as a gift that is an "income" that is taxable The fact that you declare it or not that it is a transaction is another story and the tax mans only consern is ALL income is taxable it up to you to tell the truth. Income is usually taxable, but a gift is not income. A simple google search with the words "gift, taxable, HMRC" and you will soon see that you are wrong. You obviously know nothing about finance or tax, so perhaps best to concede on this one. Link to comment Share on other sites More sharing options...
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