Gift money and tax

Hi Chris Wong,
There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here:
Tax on savings interest
Tax on dividends
Thank you. 
 

Reference post by Vin Chan I also have gifted my wife some cash from my savings, whilst I understand that the gift itself is tax freemmy concern is that this will obviously reduce my tax on the interest of the remainder of my savings as I am a higher rate tax payer. My wife would then in effect benefit from the interest of the gift as my wife does not have any other income. Would this been perceived as avoidance and be penalised by HMRC

Hi Wal62asking,

Your wife may be subject to tax on any interest the gift  generates.  
Any interest that the savings generated before the gift was made, would be yours and you may be subject to tax on that, plus any interest your remaining savings generate in the tax year.

Thank you.

Hi, I have a question about Inheritance Tax. I read up and understand that if someone is gifted cash and the gifter passes within 7 years the beneficiary is liable to pay Inheritance Tax. What happens if my partner is gifted cash and then she regifts the amount. Is she still liable for Inheritance Tax if the gifter passes within 7 years of gifting?

Hi,

Please contact our Inheritance Tax Team for advice.

Inheritance Tax: general enquiries

Thank you.

Hello, I am a uk resident. My parents live abroad and would like to gift an amount as an international transfer towards my house deposit. Does it classify as a cash gift and if so is there a maximum or upper limit one can receive without getting taxed Thanks

Hello, Could you please explain, my friends would like to transfer me 50k (as a gift to support a property buying); would I need to pay any income taxes from this sum? I see different opinions in different sources (In some sources, it is written that there are some limits for gifts, for instance, 3k ) If nothing is needed to pay, could you please provide any reference? And what should be noted in the payment direction? Many thanks!

Hi Rupa Nambiar,

Yes, howevwer there are no Income Tax implications from receiving a cash gift. If the gift generates income such as interest, then this is taxable and should be declared.

Thank you.
 

Hi, My parents from abroad contributed some money towards house deposit. Do I need tp declare it to HMRC? It doesn't generate any interest. However, we might get some profit of we decide to sell the home in future. What is the advice in these scenarios? Many thanks AK

Hi EvgeniyaEvgeniya

There are no tax implications on the giving or receipt of cash gifts, unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.  Your friend may wish to speak to inheritance tax regarding any inheritance tax implications please see
How Inheritance Tax works: thresholds, rules and allowances and
Inheritance Tax: general enquiries.  
You may also want to review the guidance at How Inheritance Tax works: thresholds, rules and allowances.

Thank you

Hi dranupama
There is no tax consequence of the tax gift and if the house in question is your only or main residence then there will be no capital gains tax to pay if/when you sell.

I and my parents are BNO (VISA) holders. We have been staying at UK over 183 days. My parents wants to give me a gift in form of cash over £88,000 by bank transfer. We are in the UK. This gift whether need to pay any income tax or capital gain tax or others ？ Whether need to declare in tax return? Thank you

Hi Sha Sha,
There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here:
Tax on savings interest
Tax on dividends

Hello, The following reply present earlier in this thread seems to contradict several other replies claiming gifts are tax free here: "You can only give gifts tax-free up to a £3,000 HMRC annual allowance according to multiple sources. HMRC allows you to roll that over ONCE in your lift, so in one year you could up that to £6,000 by using 2 years' worth of allowances. Except for your spouse, this means that over and above £3k or £6k, tax does apply. It's got nothing to do with interest or dividends. It's gift tax." Assume I give £100k to these people and live more than 7 years afterwards (hence IHT out of scope): - Spouse - Child - Friend Could anyone (ideally HMRC if they're here too) please explicitly confirm if the text above means any of these people will have to pay tax on the £97k exceeding that £3k tax-free limit? If however my hypothetic £100k gift is completely tax free for them could anyone please share a scenario illustrating a gift taxed above that £3k tax-free limit? Many thanks in advance!

Hi,

There are no Income Tax implications on the giving or receiving of cash gifts, unless, that is, the gifted money generates interest or dividends, which may be taxable. You can see guidance here:                                         

Tax on savings and investments: detailed information                                                                                                                                                                                                                                                                                                                                                                               
There may, however, be Inheritance Tax implications. You can see information here:     

How Inheritance Tax works: thresholds, rules and allowances                                                                            

You will need to contact our Inheritance Tax team for any queries relating to Inheritance Tax:      

Inheritance Tax: general enquiries       

Thank you.
 

If I receive a gift from a parent, living abroad of 80k pounds. Will I have to pay tax from it and can I use the money to pay off my mortgage or buy a to let property? And would there be tax implications in that case?

Hi PU,
There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here:
Tax on savings interest
Tax on dividends
Thank you. 

My father would like to send me £150.000 cash as a gift to my UK bank account. He is a Turkish citizen living in Turkey and he doesn't have any financial or residency bounds with the UK. Is this amount free of tax? Is there an upper limit on the gift amount? I am aware of any possible income gained from this amount is subject to tax.

Hi, My parents and I are BNO (VISA) holders from Hong Kong. We have been living in UK for more than one year and are taxpayer. My parents are retired many years ago and just sold their Hong Kong property and want to give all the proceeds (around £360,000) as a gift by bank transfer to me. I know that they have to pay the capital gain tax. Now I plan to buy a flat in UK and live with them. I have never owned a property in UK and in other country/area. 1. As I receive this gift, whether I need to pay any income tax or capital gain tax or others tax for this？ 2. At what rate it will be taxed for this gift if it needs to be taxed? 3. Whether the gift is needed to be declared in my tax return? 4. I am a BNO holder. Am I eligible to claim the first-time buyers' relief related to the stamp duty when I buy a residential property in UK? Thank you.

Hi Ilker Temeltas

There are no income tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax. Further guidance can be found here (Tax on savings interest and Tax on dividends).  
There is no limit to amount that can be given.

Thank you