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We're throwing a BIG party next year. Our friends have agreed to contribute.

The total cost of the party comes to £20,000. Our friends will contribute £15,000 and we will subsidise the rest.

This is not a business venture and we will not be making a profit.

As large amounts of money is being dealt with, do we need to set up a business? Is there a way that this can be "gifted"?

As I run a business separate to this, should I inform HMRC?

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    The real question is, how does one receive an invitation to said party?
    – BobbyScon
    Sep 25, 2018 at 21:04
  • @BobbyScon Ha ha, I knew that one was coming!
    – Sam
    Sep 26, 2018 at 8:05

1 Answer 1

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There’s no need to set up a business for this. Gifts between friends are, to a first approximation, tax free; the only thing would be that if your friends then died within 7 years the gift would form part of their estate (tapered over the 7 years) for inheritance tax purposes. All the info about this side of things is covered here.

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