Gifts are subject of income tax or CGT?
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hillery
Apprentice
Joined: 02 May 2005
Posts: 5
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 Posted: 01/16/08 - 05:07 Post subject: |
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| I have recently been informed by my aunt that she will give me a part of her estate as a gift. However, before I settle that, I would like to know whether gifts are subject of income tax, or CGT. I am not too experienced, so if anyone has any information, that would be great. Thanks in advance. |
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arnoldo
Apprentice
Joined: 02 Aug 2006
Posts: 6
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| Posted: 02/15/08 - 03:42 Post subject: |
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| This is probably the first gift of that magnitude you are getting and it is normal you are wondering whether there will be a tax for capital gain (CGT), or a regular income tax. However, there is no need to worry on your side. Generally the people who are receiving gifts will never pay any of these two taxes, nor any at all. However, the one that is giving gifts will need to pay a gift tax. However, that will only happen if the property is really valuable. If not, it will be a tax-exempt. I hope you find this information helpful. |
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