Receiving a gift - overseas

Hi, I have several questions please. 1, If a UK citizen sends another UK citizen (a family member) a gift of money from an abroad acount to a UK bank account, is this liable to tax and does it matter which country the account/money is in? 2. Can the money be directly transferred or does it need to be first put into the giftee's (person receiving the money) account abroad and then transferred by the giftee? 3. As this is a gift, does anything need to be declared (as in let HMRC know money is being brought in/gifted and the source of the money etc.) Thanks!

Also, a final question please. Does it matter if the funds being gifted have been generated from interest/investements or is it tax free only if the gift is from capital? (and would you need to provide proof of what part of the money is capital and what part(s) have been gained through interest etc?)

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. Further guidance can be found here:

Tax on savings interest

Tax on dividends

Thank you.

Hi
For the recipient, it doesnt matter where the funds have came from.