Cash gift from India to UK

Dear Sir or Madam, I have been residing in the U.K. since Sep-2014. My parents wanted to send £200,000 to me as a cash gift from India to the UK. Could I please ask the following: 1) Are cash gifts taxable or non-taxable? If they are taxable, how much would the tax be on this amount? (I read about the £3,000 non-taxable gift allowance, but am not sure how applicable it is in this situation.) 2) What is the total amount of non-taxable cash gifts that are allowed both annually and in one's lifetime? 3) How frequently can one receive cash gifts? For instance, is only one tax-free cash transfer allowed each year? 4) Do I or my parents have to fill out a form / make a declaration before the cash gift comes from India to my UK bank account? 5) Does the answer (taxable amount) to the first question change based on the beneficiary's nationality or tax residency? Thank you!

Hi Abhishek Parasrampuria,
There are no tax implications from cash gifts other than that any interest or dividends that the gift generate will be taxable.  
There are no limits on the frequency of cash gifts from a tax perspective.  
As long as the transfer is from bank to bank, the banks will deal with this.  
Any interest or dividends that arise in the tax year from the gift are taxable at the relevant UK rates, regardless of nationality, as you are resident in the UK.
Thank you.
 

Dear Sir or Madam, Thank you for the above answer. I have discussed this with my parents, who wish to give me a cash gift (they are based in India). There seems to be some restrictions on the movement of cash from India to abroad for Indian nationals / residents. However, as I am a UK resident, it is easier for me to remit cash from my Indian bank account to my UK account. Could I please confirm that: 1) If my parents give me a cash gift in India, could I move this money from my Indian bank account to my UK account without any tax implications (other than dividends that arise in the tax year)? 2) Could you please let me know the necessary financial/legal documents my parents should fill / sign for this to take place? Thank you.

Hi,
You would need to have evidence from your parents of the money deposited as a gift to ensure that it is not treated as your own income since it is being sent from your own account. 
This would be a letter from them that is witnessed by a 3rd independant party.
Thank you.

Dear Sir/Madam, A family member wants to gift me £10,000 as a cash gift from overseas outside UK/EU to help with mortgage payment. Is this taxable? I assume not from above thread. However does the fund have to come from their own personal bank account or can it be paid from his company bank account as part of his bonus payment? Kindly advise... Does this have to come from their personal bank account or can the transfer be made

Dear Sir or Madam, Thank you. Could you please confirm what is classified as a "3rd independent party?" For instance, can this be a chartered accountant qualified in India or a qualified lawyer / other professional? Thank you.

Hi kajibade Aji,
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
How they make this gift is up to them.
Thank you. 

Hi Abhishek Parasrampuria,
As long as the person witnessing the document is not related to you or the person making the gift.
Thank you. 

Hi, Please help in my query My father and brother from India would like to gift me £50000 towards my house deposit. 1) They have cash not in a bank account, they will deposit cash in their bank account and transfer to my account. Is this transaction okay ? Do I need to provide evidence of thier cash to my solicitors ?

Hi Ravi

Yes they can do this. You would need to ask your solicitor if evidence is required.

Thank you

Hello. My uncle wishes to gift me cash from India to my UK bank account. My uncle is Australian resident but Indian NRI. Money will come from his bank account in India. Is the transfer of the cash gift subject to tax

Hi,
Cash gifts are not subject to tax, only the interest they generate.
Thank you.

I am a UK citizen . My brother in India ( Indian citizen) wants to send a cash gift from his Indian bank account to my UK bank account as a gift . Do I have have to declare this here . Are there tax implications for me Thank you

Hi Richard Fernandes

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 and Tax on dividends).   

Thanks

Hi, I am residing in the UK and my parents in India would like to send me £20,000 GBP towards the deposit for buying a house. I would like to know the tax implications of sending the amount from their Indian Bank Account. Also, please let me know the tax implications for money send from my Indian Bank Account to my UK Bank Account. I would like to know any documentation required and where these documents need to be submitted - HMRC or my UK Bank. Thanks

Hi ardra,
There are no Income Tax implications on the giving or 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.

I am taking a Mortgage/Loan on my Home in India (that is not generating any income) and would like to get the funds (£85000) to UK and use them towards Deposit for my First home. Could you advise if am allowed to transfer the entire amount to my UK Bank account without any Tax implications pls?

My sister has a bank account in India and she is a British citizen and she would like to transfer me a cash gift of £300,000 to buy a house do I have to pay any uk tax if she does this as it will not incur any interest as the money will go straight to purchase property? Many thanks