cash gift

Dear HMRC, My mother and I both are UK tax residents. My mother gave me £500,000 as a gift. Should I report this to HMRC? Thank you.

Yes 100 % get professional advise GOV Guidance is as follows https://www.gov.uk/inheritance-tax/gifts Taper relief only applies if the total value of gifts made in the 7 years before you die is over the £325,000 tax-free threshold. The 7 year rule No tax is due on any gifts you give if you live for 7 years after giving them - unless the gift is part of a trust. This is known as the 7 year rule. If you die within 7 years of giving a gift and there’s Inheritance Tax to pay on it, the amount of tax due after your death depends on when you gave it. Gifts given in the 3 years before your death are taxed at 40%. Gifts given 3 to 7 years before your death are taxed on a sliding scale known as ‘taper relief’. Taper relief only applies if the total value of gifts made in the 7 years before you die is over the £325,000 tax-free threshold. Taper relief Years between gift and death Rate of tax on the gift 3 to 4 years 32% 4 to 5 years 24% 5 to 6 years 16% 6 to 7 years 8% 7 or more 0%

Hi Raymond Choi

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

Thank you

Dear HMRC I am a UK tax resident, non-domiciled. I am employed by an overseas (Hong Kong) company and adopting remittance basis for self assessment. During the tax year, I did not remit any money earned from the employment to the UK. My father, aged over 70, is also a UK tax resident. He is retired and has no income. I plan to support his daily expenses from the income I have earned from my employment in Hong Kong. Would you please advise the tax implication, if any, to my father or myself? Do I need to declare any taxable income? Thanks in advance.

Hi 911GTR,
As you are supporting him from your Hong Kong funds, this will be seen as a remittance and be taxable.
Please see this guidance:
Remittance basis 2023 (HS264)
Thank you. 

Dear HMRC My wife and I were planning to transfer funds (for the purposes of buying a property) to our daughter, who is a resident of the UK. We live overseas (Singapore). We are all UK nationals; while my wife and I are non tax residents, our daughter is a tax resident. 1. Will the gift transfer be taxable for her; or for us? 2. Is there an upper limit on how much can be transferred to my daughter? 3. Is the allowance per recipient or it is per transferor? 4. Will it be counted towards inheritance transfer? Many thanks in advance

Hi,

There are no Income Tax implications on the giving or receipt of cash gifts, but you may wish to speak to Inheritance Tax regarding any Inheritance Tax implications.

Rules on giving gifts

Inheritance Tax: general enquiries

You may also want to review the guidance here:

How Inheritance Tax works: thresholds, rules and allowances

Thank you.