Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 17 Nov 2024 18:22:07 GMT by Alber Mekael
Dear Sir/Madame, I hope this finds you very well, I had two inquiries, please. Regarding the amount of taxable income, I should declare in a given year. My mum, Egyptian, lives in Egypt, owns a property in her name that she rents out for (the equivalent of) GBP 900 per month and she wants to send me this money to help with my rental payments here in London. I understand the above is to be considered a gift and is not part of my income tax. So please confirm. Moreover, my mum wants the tenant in her property to pay directly into my account in the UK as (instead of to her and then from her account to mine) as she wants to avoid the transfer charges incurred on her account for each payment that goes out of the country (in Egypt we pay up to GBP 30 or higher for each payment that goes out and it takes several days). Would this set up change the assessment at all? She is the owner of the property; she maintains and manages it but she wants the income to be remitted to me to help me with my monthly rental. The rental income will be remitted to my account either through AirBnB if she lets it out through AirBnB or through the mgmt. agency's account (the agency that manages it for my mum) and in both cases we would avoid the extra transfer charges Let me know please Thank you
Posted Fri, 22 Nov 2024 12:34:01 GMT by HMRC Admin 20 Response
Hi,
The gift of money is not something you would need to declare to HMRC however it could have some impact on any inheritance tax for your mother in Egypt.  
You would both need to do some research on Egyptian Inheritance tax.
The issue here for HMRC is the possible arrangement of you being paid directly by Airbnb or the property management company.
This arrangement could be seen as you having a beneficial interest in the property which would then fall into the realm of you having to declare this as foreign rental income.  
Please refer to this guidance:  CG10720 - Persons chargeable: beneficial owner
Thank you.

You must be signed in to post in this forum.