I have stopped work to take on full time care of my mother in my house, she is a self funded
retiree and wants to pay me a weekly sum to cover my living costs & the care of her .
The money is from her savings , are there any tax implications doing this - is this classified
as gifting to family member?
Hi @xrhamilton
To be a genuine gift the person giving doesn’t expect anything in return and the gift isn’t connected to any income-producing activities by the recipient.
If the gift falls within these guidelines, then there are no tax implications as it would be non-taxable income and doesn’t need to be reported on a tax return, there is no limit to the size of the gift.
If it is a weekly payment for care provided and living cost this could be argued as an expectation in return for the payments or a business-like activity and therefore taxable income that would be reportable on a tax return.
We have a thread on our page that goes into a bit more detail you may wish to check out.
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