Cash gift from abroad

I am an Indian citizen and a UK tax resident. I don’t have an ILR yet. My mother wants to send me £350,000 to help me buy a house here. Do I need to declare this amount to HMRC? Thanks.

Hi,

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. You can see guidance here:

Tax on savings interest

Tax on dividends

Thank you.  

I live in France and now pay taxes in France. My wife owns 4 UK rental properties and pays tax in the UK for these. We wish to gift £25,500 to her mother in order for her to buy her council house. Are any taxes due for this?

Hi Silverfox64,
No. There is no tax due on cash gifts. no tax relief applies either.
Thank you. 

Hi, My mum owns a property in UAE from inheritance after my dad passed away. Now she is selling it. As she is not a UAE resident and does not hold a bank account there - we have appointed a POA holder to get the cash into the UAE bank account. My mum wants to give part of that money to the UK. What paperwork should we need to have in place to help to show this source of gift? Will there be any limit to how much she can gift? Do I need to inform anywhere beforehand the amount that is going to come?

Hi,

Your mum will need to work out if there is any Capital Gains Tax to pay on the disposal of the overseas property. All parts of the capital gains calculation, will need to be converted to pounds sterling, using a just and reasonable exchange rate in use at the time of acquisition and disposal.  

For your convenience, there are exchange rates at:

The National Archives: Exchange rates from HMRC in CSV and XML format

For older rates at

The National Archives: Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009

You are free to use any of the supplied rates or one of your own choosing.  

There is a calculator below, as well as information to help you work out the gain.  

Capital Gains Tax

Any gain, should be reported on a Self Assessment Tax Return.

Thank you.

Hi, I'm a Indian citizen and UK resident. My father is sending me £35,000 as gift money from his account in India towards a deposit for buying a house. I wouldn't be immediately using that amount towards the house but plan to in my stock and shares ISA and my wife's ISA. Would there be any tax implications on any gains I may have made if I pull that money possibly in the next 3 months/ 6months/1 years ?

Hi, I'm a Indian citizen and UK resident. My father is sending me £35,000 as gift money from his account in India towards a deposit for buying a house. I wouldn't be immediately using that amount towards the house but plan to in my stock and shares ISA and my wife's ISA. Would there be any tax implications on any gains I may have made if I pull that money possibly in the next 3 months/ 6months/1 years ?

Hi,

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. Interest earned in an ISA is not taxable.

Tax on savings interest
Tax on dividends

Thank you.

A family member from Switzerland wants to send me gift as cash to me and my wife in our UK bank account to help us with our mortgage payment. I read from this thread there are no tax implications. Does this make difference if he makes the payment through his company's bank account as part payment of his bonus?

Hi I’m an NZ citizen and tax resident. I wish to send my niece who is a uk citizen and uk tax resident $10,000 cash I believe this gift will not be subject gift tax if transferred from my nz bank account I also have a UK bank account - What is the situation regarding gift tax if I transfer this amount to my niece from my HSBC bank account in the UK

Hi,
There are no UK income tax implications on the receipt of a cash gift, whether from the UK or overseas, unless the cash gift generates interest or dividends.
The interest and dividends would then potentially be subject to tax.  
Further guidance can be found here:
Tax on savings interests 
Tax on dividends

Hi, I am a HK citizen and now UK resident but yet to hv ILR. If my boyfriend in France send me about £700 each month as living support until I have a stable job, will this cash received be taxable? Thanks.

Hello, I've inherited some money in India. I am a U.K. citizen and would like to transfer some of this across to help reduce my mortgage. Are there any tax implications in doing this. Also, how do I notify you in advance of this as I believe this has to be done in some scenarios.

I am a UK resident and my father(not a UK resident) will transfer his own property abroad to me, my questions are as follow, thanks 1) Do I need to pay tax for receiving the oversea property as a gift from my father? 2) Do I need to pay CGT on that oversea property if I sell it which is a gift not I bought for my own? 3) If there is a tax implication, how to calculate the gained? Is it the difference between the price sold and its market value of the date of transferring the property to me or the difference between the price sold and the original price my father bought it 30 years ago?

Hi Sandy Mo,

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. You can see further guidance here:

Tax on savings interest

Tax on dividends

Thank you. 

Hi Andrew Skinner,

There are no Income Tax implications from transferring your inheritance to the UK, as this is not income. Any interest that your inheritance generates is taxable and should be declared.

Thank you.
 

Thank you for this update. Do i need to notify my bank or HMRC of this prior to the money being transferred and, if i do, how do i notify HMRC.

Hi CheMey,
As your father is not UK resident, he does not have UK capital gains tax to pay on the gift of the property to you, he may have the equivalent to pay, in his country of residence.  
You may have a capital gains tax liability if you are resident in the UK at the time you dispose of this property.  
You are acquiring the property at the market value of the property in pounds sterling at the time it is gifted to you.  
You will need to convert to pounds steling using a just and reasonable exchange rate in operation at the time you were gifted the property.  
This value is deducted from the disposal value in pounds sterling using a just and reasonable exchange rate in use at the time of disposal.  
The difference, minus costs, is either a gain or loss.  
As this is a foreign property, you need to declare the disposal on a self assessment tax return.
There is a calculator at Tax when you sell property to help you.
Thank you.

Hi Andrew Skinner

You dont need to inform HMRC but you may want to advise your bank,

Thank you