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Posted Wed, 03 Mar 2021 16:39:31 GMT by subram
Hi, I am a British citizen and a tax resident in the UK. My mother lives in India and is an Indian resident. She would like to transfer £ 15000 from her Indian bank to my UK bank account as a gift. 1. Do I have to declare the gift money in my self-assessment? 2. Do I have to submit or upload any proof for this cash gift? 3. Would I incur any tax liability if I use the gift money to fund my initial deposit to buy a property in UK? Thanks
Posted Thu, 04 Mar 2021 14:23:51 GMT by HMRC Admin 5
Hello.

You do not need to declare this gift for tax purposes, even if used as a deposit for a house but if the income generates any interest or dividends, then this would need to be reported.  

Thank You.
Posted Tue, 16 Mar 2021 19:36:08 GMT by subram
Many thanks for your reply, it is now very clear that there is no tax liability if i use this to fund my property purchase. If my mother sends £ 50000 instead of £ 15000, do I have to declare gift meaning is there a limit after which I need to report the gift income or am I to understand that there is no limit and that I don't have to report the gift income at all? Also, when I let this house for rent or even sell this later on, how will this cash gift impact my tax if at all it does?
Posted Wed, 17 Mar 2021 15:13:54 GMT by HMRC Admin 5
Hello subram.

There is no time limit or quantity limit on a gift for money.
The money will still not need to be reported.
If you subsequently rent property then this may need to be declared through Self Assessment.
When the house is sold the gift does not come into consideration for tax purposes. 

Thank You.

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