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Posted Tue, 23 Aug 2022 12:52:35 GMT by Corsaire
I am expecting a cash gift from my mother in New Zealand of £30,000. Am I correct in assuming I don’t need to declare this BUT that I am liable for any interest that the money accrues? Does it also mean that if I pay off a car loan or mortgage with that cash gift then I have to pay any interest on the “benefit” that the gift has given? Not sure how that would be calculated? Thank you for the help and guidance
Posted Fri, 26 Aug 2022 14:56:53 GMT by HMRC Admin 28
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  

Tax on dividends

Thank you.
Posted Sun, 28 Aug 2022 15:37:20 GMT by Vee
If Corsaire uses the money to pay part of her mortgage, does she have to pay tax? If so, how much?
Posted Mon, 29 Aug 2022 08:14:11 GMT by OllieS
Good morning, I used to be Indian citizen but had to surrender it when I took up my British citizenship. I'm permanently settled in UK. My parents' house (main residence that was built by my parents years ago) with back garden was sold recently. The house was owned by my mum (dad passed away) and she would like to send me half of the proceeds as gift to UK. Almost £100k. Is there any income tax / gift tax, any other tax on it? I'm aware of Inheritance tax if she passes away - but nothing to declare while she is alive? The back garden was jointly owned with my brother. However we both transferred it as gift to my mum to ease the selling process of the house. I will receive half of the proceeds. Around £30k. I will pay Capital gains tax in India. Is there any income tax, capital gains tax, gift tax, any other tax on it here inthe UK? Do I have to make any declaration even if no tax? Thank you for your advice. Kind regards OllieS
Posted Mon, 05 Sep 2022 11:31:05 GMT by HMRC Admin 19
Hi,

Cash gifts from overseas are not liable to Income Tax, but any interest or dividends generated is potentially taxable. Further guidance can be found here:

Tax on savings interest

Tax on dividends                                               

As regards the transfer of the overseas asset to your mother, you are potentially liable to Capital Gains Tax on the transaction. Please see information here:                                                             
Capital Gains Tax summary notes

Thank you.                                   
Posted Mon, 05 Sep 2022 11:49:05 GMT by HMRC Admin 19
Hi Vee,

Gifts of cash from overseas are not liable to Income Tax, but any interest or dividends generated by the cash is potentially taxable.

Tax on savings interest

Tax on dividends

If you use the gifted money to pay off part of a mortgage this would have no Income Tax consequences.

Thank you.

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