Father overseas company gifting money to son

Hi, I want some clarifications. I have recently moved to UK and I am foreign national. My father has to gift me money 500k GBP in the UK accounts dor buying property. He would be gifting money via his company overseas as he is based overseas as well. Would this be fine with hmrc or any implications involved plz advise. 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.  

Further guidance can be found here.

Tax on savings interest

Tax on dividends

Thank you.

Is there any issue with refernce to tax in UK if Father's is regularly providing family support via his overseas company accounts to son in UK. Does it matter of money is transfered from.personal or company accounts overseas. Kindly provide some guidance. Thanks

And do we need to declare these cash gifts or support money please advise. Thanks

Dear HMRC Officer, I am a British citizen by naturalisation and am of Indian origin. My parents in India wanted to make a cash gift to me in the near future to the amount of £100,000. I understand from your previous answer that this is tax free unless it generates interest in the UK. My questions are... 1. Can I use this money towards paying some of my house mortgage in the UK? 2. If some of the money is put into my son's Junior ISA, will the interest generated be taxed? Could you please answer these questions for me? Many thanks 

Hi,
 

1. It is your choice how the gift is spent  2.  Please see eguidance at : Junior Individual Savings Accounts (ISA) . Thank you.

 

Hi Arauf222
There would be no UK inheritance tax implications from the cash gifts from the overseas company.  
There would be no UK income tax implications from a cash gift from an overseas company.  
If the gift generated interest or dividends, then the interest and dividends should be declare, as there may be a tax liability.

Hi Arauf222,
Any tax issues would be in the country your father is resident in, as he is taking money from his company.  
Banks monitor their transfer transactions, for potentail money laundering etc.  
There are no UK tax implications from the transfer of the assets.
Thank you.