Cash gift from parents outside UK

Hi, I can see a lot of information about direct relatives but unsure how the rules applies to other relatives. My french Aunt, who lives in France, intends on sending us 20,000 euros to help with house repairs we need to undertake. This sum is permitted under french law as she has no children, but I am unclear what tax implications for a cash gift would apply to this situation. Thank you for your guidance.

Hi,

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.  You can find more information here

Tax on savings interest

and

Tax on dividends 

Thank you.

Hi Ganshiv82,

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. You can see further guidance here:

Tax on savings interest

Tax on dividends

Thank you.  

Hi Edgar,

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.  

Thank you.

My relative in China would like to transfer money from their China bank account to my China bank account every month for value equal to £10000 to support my family’s life in UK. My questions are : 1. Does it need to declare and pay tax? 2. Do I need to show supporting of our relationship? 3. Can I transfer the money from my China bank account to my UK bank account? 4. Does my relative need to provide any supporting of the source of money in their bank account? 5. Is it any limit amount of money my relative can send me?

Dear all, I understand from the answers in this thread that money sent from parents is not subject to tax. It may be, however, if the money returns interest from the bank. What if the bank doesn't return any interest whatsoever (the money is just sitting in normal bank account with no interest)? Also, what if I decide to transfer this money to an S&S ISA account?

Hi Oldtim Hmrc,

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. You can see further guidance here:

Tax on savings interest

Tax on dividends

As this is a regular payment you amy however want to contact your bank to let them know and they may ask for further information.

Thank you.
 

Hi Tiago Garcao,

There are no Income Tax implications on this scenario.

Thank you.

 

Hi there. My partner's parents in China want to give us cash for around £50 000 when we visit them later this year for us to put a deposit on our first house. I understand from previous comments that there are no tax implications on this if it doesn't gain interest in a bank account. When depositing this into your bank account it will be flagged to HMRC I assume for anti money laundering. What information will we need to provide for example where the money came from etc so I can make sure I have all the details ready?

Hello, My French family is looking to send 35,000€ to my British bank account. I am a dual national (British/French), I am a U.K. resident and pay taxes in the U.K. Do I need to declare this cash gift on reception, and do I need to declare it on my self assessment next year? Will this count towards capital gains tax? Thank you.

Hi, I would like to know whether there will be tax implications if I receiving properties from my parents in Hong Kong which are non-UK recidents? Thanks.

Hi Gary,

You will need to consult your bank to ascertain what evidence they require.

Thank you.

Hi Aurelie,

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

Thank you.

Hi kwokfrankie,

There would be no tax due on this.

Thank you.

Hello, my father (French and US citizen) lives abroad (not a UK tax resident) and would like to gift me $20-50k. After reading several posts and answers, it looks like this gift is not taxable. Where I am confused is about the 7-year rule. 1. Does it apply to non-UK residents or only when the estate is based in the UK? 2. If he passes away before 7 years, do I need to pay any tax (provided it stays under £325k) or is it still exempt? 3. If the money is held in an overseas account, I understand I just declare as part of my overseas assets, otherwise it's just declared as a gift here in the UK, is that correct? Thank you for your help.

Hi Rafael,

The 7 year rule is for inheritance tax reasons as the gift would be included in part of the estate if the gift was over £3000 and was received within 7 years of the gifter passing away. This is for UK inheritance. You dont declare it as income for yourself unless it generates any interest or dividends.

Thank you.

Hi, I have just started working in the UK on a skilled worker Visa in the month of April. Since I did not have a residential address in the UK, I could not open a bank account here till the first week of May. However, my father, an Indian citizen, has held a UK bank account with HSBC UK for many years from when he worked with a British company and his pension still gets credited to that account. Therefore, I got my salary for April and my signing bonus, credited into my father's UK bank account. Now that I have been able to open my own bank account: 1. What are the tax implications, if any, if I transfer my salary+signing bonus from my father's account to my own account? 2. Will I be taxed for this transfer over and above the Income tax to be deducted from the salary+signing bonus? 3. Is there an upper cap to the amount that can be transferred tax-free to my account from my father's?

Hi ajitesh13
There is no tax implication in this.
Tax has already been deducted on the earnings.
There is no limit (unless stated by your bank for daily limits) on the amount to transfer.
Thankyou.

My step-son is moving to the UK and will be domiciled in the UK. He plans to remain a US citizen and potentially be a dual UK/US citizen. If my wife and I who live in the USA, and are US citizens, send him cash gifts is he liable for any UK tax on those gifts? Also, when we pass away he is the primary beneficiary of our estates. As beneficiary will he be liable for UK tax on his inheritance from us as US citizens? Are there any UK laws specific to US/UK taxation that will penalize him in these situations? Thank you for your help.

Hi,

There are no IncomeTax implications on the giving or receipt of cash gifts, but you may wish to contact Inheritance Tax regarding any Inheritance Tax implications.

How Inheritance Tax works: thresholds, rules and allowances

Inheritance Tax: general enquiries

You may also want to review the guidance here:

Overview

Thank you.