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Posted Wed, 22 Jun 2022 12:40:25 GMT by mohanur
Hi I am a UK resident, domicilled for tax purposes, for more than 17 yrs. I am an indian citizen. A family friend , from our village in India wants to gift money of about £ 500000 to me. Currently he lives and works in Nigeria, Is it necessary to declare that to HMRC and are there any tax to be paid on that amount?
Posted Thu, 23 Jun 2022 07:44:00 GMT by HMRC Admin 20
Hi mohanur,

There are no income tax implications on receiving money as a gift.  
However you may pay tax on the interest you accrue from this amount in bank interest.
You may also like to check Inheritance Tax rules as these are different from Income Tax and we are unable to comment on this part of your query :

Inheritance Tax: general enquiries

Thank you.
Posted Sun, 14 Aug 2022 17:07:46 GMT by mohanur
Thank you for the reply. Sorry for the delayed response to your reply. I have clarified with HMRC reg. the inheritance tax. No problems there. Given the above circumstances ,Do I need to declare this to the HMRC when I file the returns,What is the relevance SA106 FOREIGN SECTION 42 etc , to this situation . Please clarify. Much appreciated.
Posted Mon, 15 Aug 2022 12:59:15 GMT by HMRC Admin 17

Hi,
 
There are no income tax implications on the receipt of a cash gift unless the income 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    .
 
There are no tax implications on the giving or receipt of cash gifts, but you may wish to speak to inheritance tax regarding any inheritance tax implications :

How Inheritance Tax works: thresholds, rules and allowances    and  :

Inheritance Tax: general enquiries      .

Thank you.

 
Posted Wed, 17 Aug 2022 09:40:36 GMT by mohanur
Thank you for the above information. Could you please clarify if I will need to declare the gift on my self assessment tax return? Thank you
Posted Thu, 18 Aug 2022 15:44:17 GMT by HMRC Admin 2
Hi,

You do not need to declare the actual gift, only any interest or dividends that it generates.

Thank you.

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