Q: Step-by-step procedure

The section of law behind each step is shown beside it. 1 Confirm relationship s.85(5) Relative includes ancestors, descendants of grandparents, in-laws and their spouses. 2 Bank transfer s.39(3) From the giver's account, giver holding an NTN. 3 Gift declaration — Signed note of the gift. 4 Wealth statements s.116 Shown by both people.

Question 1

When this applies

Accepted Answer

Someone is giving you money.

Question 2

Time limits, fees and sections

Accepted Answer

Item Rule Section Relatives Exempt if from a relative ITO s.39(1)(la), s.85(5) Channel Must come by crossed cheque, banking channel or digital means from a person with an NTN s.39(3) Otherwise Taxed as income from other sources s.39(3)

Question 3

Step-by-step procedure

Accepted Answer

The section of law behind each step is shown beside it.

1
Confirm relationships.85(5)
Relative includes ancestors, descendants of grandparents, in-laws and their spouses.
2
Bank transfers.39(3)
From the giver's account, giver holding an NTN.
3
Gift declaration—
Signed note of the gift.
4
Wealth statementss.116
Shown by both people.

Question 4

Documents to prepare

Accepted Answer

Bank transfer record Gift declaration Giver's NTN Relationship proof

Question 5

Practical tips

Accepted Answer

Cash gifts fail the test even between parent and child

Item	Rule	Section
Relatives	Exempt if from a relative	ITO s.39(1)(la), s.85(5)
Channel	Must come by crossed cheque, banking channel or digital means from a person with an NTN	s.39(3)
Otherwise	Taxed as income from other sources	s.39(3)