Cash gift from parents outside UK

Hi, i am a UK resident tax payer. My mum from overseas (India) wants to gift me a cash lumpsum c40 - 50k GBP, mainly to help me so that I can use it for my remortgage and support me in the current economic climate. If she transfers this to my UK bank account, will there be any tax implications for me? Thnx.

Hello. I am a tax resident in UK. My mother has an apartment back in our home country and a sum of money on her bank account which is also outside UK. She is not a UK citizen and has never resided in the UK. The total value of the apartment and money is 450 000 GBP. I understand that there are no income or gift taxes to be paid if she gifts me this apartment and sum of money. But I heard that there may be an inheritance tax if she were to die within 7 years after gifting my this apartment and money. Does the 7-year rule and 325k GPB threshold apply given that everything is located overseas and the donee has nothing to do with UK?

Hi sac cloud,

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.  You can see more guidance here:

Tax on savings interest

Tax on dividends

Thank you.

Hi Bishop69,

Provided that your mother is not a UK resident when she dies, the UK rules on Inheritance and Capital Gains Tax, would only apply to her estate that is in the UK.  For example, property or bank accounts.  

How Inheritance Tax works: thresholds, rules and allowances 

If you were to inherit the property or a share of it and then dispose of it while UK resident, you may be subject to captial gains tax on the disposal of your share of the property. You would have to declare this on a Self Assessment Tax Return.

Thank you.

Hello, I am a UK resident (non-citizen) and working and paying tax in the UK. My parents in Hong Kong plans to give me cash gifts around 100k pounds to my Hong Kong bank accounts under my name. I'm aware that the UK has globla income tax. Will this transfer (in HK) be subjected to any taxation? If I plan to further transfer this sum from my HK bank account to UK in the future, will that also incur any taxes? Thanks!

Hi Honeybee Bee,

Please note that gifts of money from parents overseas are not subject to UK Income Tax, and the transfer of money from an overseas bank account to a UK bank account is also exempt from Income Tax. However any bank interest that is generated may be taxable.         

Thank you.                     

Dear HMRC Admin, I am a UK Citizen, and my father (Indian Citizen) is going to gift me me some money from India (he lives there) which needs transferring, this amount will be used as an initial deposit to buy a property in the UK. I would like to know: 1. Do I have to declare or notify you/HMRC, and would that need any documentation from me (relationship proof) and the sender from India (e.g., source/proof of income in India etc) ? If yes, please can you share any links/procedures for the same. 2. Further, does my father need to declare somewhere that it is a gift from him? 3. Do I have to declare or notify the bank, and would that need any documentation from HMRC, the sender from India and the receiver here in UK? If yes, please can you share any links/procedures for the same. 4. If I get the transferred amount in a 0% interest account of mine, would I still have to pay any tax? 5. Are there any limits to the number of transfers and the amounts from India to UK as gifts? Thank you for reading my questions. Regards, SP

Hi I am a UK tax resident with dual citizenship (Italian and British). In 2022 my parents (living in Italy) sent me some cash (about £70k) to support me from their Italian bank account to my Italian bank account. In January 2023, I transferred part of the money (about £40k) from my Italian bank account to my UK bank account. In February 2023, I received a letter from HMRC asking me to declare my overseas assets/income/gains since I may have to pay UK tax on. In the certificate of tax position to be completed and returned to HMRC there are 4 options: 1) I need to bring my tax affairs up to date. I will declare all my outstanding UK tax using HMRC's Worldwide Disclosure Facility 2) I believe I have declared all my overseas income and/or gains correctly on my tax return(s) as shown below... 3) I have not declared my overseas income and/or gains as they are covered by personal allowances or reliefs 4) I have not declared my overseas income and/or gains as they are not liable to UK tax. Given the situation that I described, which option is correct? Is it the 4th? Thanks in advance!

Thank you admin for confirming that no taxes will apply if my mum (from overseas) sends me (a uk citizen) a lumpsum to be used in the current economic climate. If, instead of my mum my brother sends me this lumpsum, that's alright as well, right? I won't havecanybtax implications..?

Hi HMRC, I am now in BNO 5+1 status, I received my BNO approval clearance email on 12 Aug 2022. My dad who is not a UK citizen wants to transfer GBP200,000 cash to me as "Gift" for buying flat in UK and save some amount in UK bank as fixed term deposit and earn interests. May I know if this amount needs to be reported and taxed? And do Hong Kong BNO 5+1 status person like me has a 180 days exemption period (after BNO approved) to receive "Gift" money from Hong Kong that does not need to be taxed? What if my dad transfer "Gift" money to me after 180 days? Any difference on handling tax? Ronald

Hi knowmore,

We are unable to confirm which option you must choose. Only you can do that. The information and links below might help you reach a decision on which option is appropriate to your circumstances.

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

You will need to assess your residence and domicile situation. To do this, please review the guidance below and apply the tests at RDR3.

Residence, domicile and the remittance basis: RDR1

If you are resident and domiciled or deemed domicled in the UK, the you must declare all of your world-wide income each tax year you are resident in the UK, regardless of how much money is involved.    

If you are resident, but not domiciled in a tax year, and your foreign income in that tax year, is not remitted to the UK, then it is not taxable in that tax year. If, however, you bring that income into the UK in a later tax year, because you were resident in the UK when the income arose, you would be liable to tax on that income in the tax year you remit it to the UK.  If you never remit the income to the UK, it will never be taxable in the UK

Thank you.

Hi CHI HO MAN,

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.

Hi! My parents have sent me a cash gift from abroad to help me buy a property in the UK. I understand that money is not subjected to tax, but my question is: Would it be okay to add that money into my premium bonds (as earnings are tax free) til the moment I have to use it to buy the property? Thanks!

Hi,

What you actually do with the gift is up to you.

Thank you.

Hello.im a student in university of Hertfordshire..my parent want to buy house for me at Hatfield around £310000.they want gift for me and transfer all to my account.do I have to pay tax and declare it?

Hi Ahmad Farhan,

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.

 

Hi everyone, I’m a resident of the UK (settled status with a non-EU passport). I work and live in the UK but my parents don’t. They wish to gift me £350,000 so that I can buy a house. Will I be taxed on this? Do I have to declare it to HMRC? Thank you so much in advance.

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.  

Further guidance can be found here:

Tax on savings interest

Tax on dividends

Thank you.

Hello, I'm am currently a resident in the UK. As I'm in need of paying my house deposit/first month rent urgently in the UK and my brother from India came forward to send me £3900 from his Indian account to my UK account. If I get that money transferred do I need to declare it or need to pay tax? Further, does my brother need to declare somewhere that it is a gift from him?

Hi,I just want to double confirm that getting cash gift from parents in India, is NOT taxable? I am a UK tax paying resident (ILR). I have seen responses to similar queries that confirms it is NOT taxable, but just want to be 100% sure. A confirmation is much appreciated. Thanks. Ganesh