Readers’ forum: Tax treatment of payment to personal assistant/friend

Gift

I was interested to read Readers’ forum question 19 900 (Taxation 10 March 2022 page 24) and the responses. I have a situation which has some similarities but also a key difference.

My client is also selling his company for consideration of several million pounds. He also wants to make a gift out of the proceeds but only to one person his personal assistant who has been with him for many years through a number of different business ventures. She has also helped out (unpaid) from time to time with various items of family admin. She has become a family friend – she went to my client’s daughter’s wedding and my client is godfather to one of her children.

In my view any gift to her would genuinely be a personal thank you and should not be subject to income tax.

Do readers agree?...