No, in the UK, you do not need to pay tax for receiving gifts even if its a cash gift. However, the person who gives you money may need to pay tax if he or she is a UK tax payer. Anyone in the UK is entitled to give 3000 pounds in total away each year, which will be exempted from inheritance tax.

The relationship between the giver and receiver is also an important factor. If you are married, your gift to your partner is exempted from inheritance tax.

If you get cash gift from outside the UK, the person may not need to pay UK tax, but is entitled to the inheritance tax in his or her own country.

Find out more about UK inheritance tax here.