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Posted Wed, 17 Jan 2024 13:57:58 GMT by
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!
Posted Fri, 19 Jan 2024 15:51:34 GMT by HMRC Admin 20
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.
 
Posted Wed, 21 Feb 2024 13:16:42 GMT by
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.
Posted Wed, 21 Feb 2024 14:18:05 GMT by HMRC Admin 8
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.
Posted Wed, 21 Feb 2024 15:54:33 GMT by
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
Posted Wed, 21 Feb 2024 17:10:26 GMT by
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.
Posted Thu, 22 Feb 2024 09:26:33 GMT by HMRC Admin 25
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. 
Posted Thu, 22 Feb 2024 09:50:49 GMT by HMRC Admin 25
Hi Abhishek Parasrampuria,
As long as the person witnessing the document is not related to you or the person making the gift.
Thank you. 
Posted Wed, 20 Mar 2024 10:44:50 GMT by Ravi
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 ?
Posted Mon, 25 Mar 2024 14:49:08 GMT by HMRC Admin 5
Hi Ravi

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

Thank you

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