This discussion clarifies UK gift tax rules, specifically concerning gifts made to a husband's sister's husband. Generally, gifts received from relatives are not taxable for the recipient under the Income Tax Act. The definition of 'relative' for tax purposes includes spouses, siblings, siblings of a spouse, parents' siblings, and lineal ascendants/descendants, along with their spouses. Therefore, a gift to a husband's sister's husband, who falls within this extended definition of a relative, should not incur tax complications for the recipient.
13 March 2020
Yes. Gift received from a relative is not taxable in hands of the recipient under section 56 of Income Tax Act. The persons who are considered as relatives are
In case of an individual
1. Spouse of the individual
2. Brother or sister of the individual
3. Brother or sister of the spouse of the individual
4. Brother or sister of either of the parents of the individual
5. Any lineal ascendant or descendant of the individual
6. Any lineal ascendant or descendant of the spouse of the individual
7. Spouse of the person referred to in above points