Gift tax for cash gift from overseas

Hi, I’m going to receive money from my parents in Italy to buy my first house. I know there will be no taxes to pay but only for interests generates in the bank account. This may be my case so I would ask it’s happening even if the money will be in the bank account only few months and if to pay this taxes I have to do a self assessment or they will be taken with all the rest at the end of the fiscal year. I don’t usually do any declaration, it’s everything done by my employer company. Thanks

Dear HMRC advisor, it appears my question got skipped so allow me to repost it here, please, and I would be grateful for a response: Hi, my mother has money saved from her business overseas. I am one of two sons, so she sends me cash gifts from time to time, usually 10-20k at a time. She now lives in the UK under a pre-settled status. She works here on a zero-hours contract just to have something to do. If she continues to send me money from her account in Brazil, now that she lives and works here on this zero-hour contract, will it create a tax liability for me? If it will, would it make a difference if she lived here but didn't work here? Thank you

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 see guidance here:

Tax on savings interest

Tax on dividends
 
Whilst there are no Income Tax implications on the giving or receipt of cash gifts, you may wish to speak to Inheritance Tax regarding any Inheritance Tax implications.

Inheritance Tax: general enquiries 

You may also want to review the guidance here:

How Inheritance Tax works: thresholds, rules and allowances

Rules on giving gifts

Thank you
 

Hello everyone, First and foremost, thank you for taking the time to read (and possibly answer) my question. I am originally a Turkish citizen and have been residing and working in the UK under a skilled-worker visa for approximately 2 years. I'm considering transferring money from my bank in Turkey to my bank here in the UK, be it Lloyds or another institution. This sum includes both my savings from over the years and the amount I received from selling my car. My main goal for this transfer is to purchase a property. Would there be any taxes incurred for such a transfer? For reference, the amount is slightly over £100,000. Additionally, I have another query. If I were to transfer money from a bank account I have in the US to the UK, would that also be subject to any taxes? This sum is primarily from consultancy work I did over the years. Thank you in advance for any insights or advice!

Hi h l,

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 SofiaGNB,

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 Mirko Di Giacomo,

The bank will notify HMRC after the ned of the tax year of the interest received. If your total interest is below £10,000 you do not need to send in a return. HMRC will send you a calculation showing any tax due which you can then pay direct or have it collected in your tax code the following year.

Thank you.

It isn't a gift and i'm sending it to myself only

Hello, I am UK citizen from Indian Origin. My Indian friend works in Dubai. He is still Indian Citizen but works/lives in Dubai. Can I receive money gift from a him without paying tax. Amount would be around £40,000 - £50,000. I will use it to buy my house in UK. I am asking this question as he is not in my blood relation or family. Thanks

Hi Tavares,
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
It doesnt matter where your mother lives.
Thank you 

 

 

Hello, Can anyone please comment on my question - Hello, I am UK citizen from Indian Origin. My Indian friend works in Dubai. He is still Indian Citizen but works/lives in Dubai. Can I receive money gift from a him without paying tax. Amount would be around £40,000 - £50,000. I will use it to buy my house in UK. I am asking this question as he is not in my blood relation or family. Thanks

Hi anitajroyster,

This is not a gift as it is your own income.
It also depends on whether you are claiming the remittance basis or not and how the money is spent. please refer to:
 Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you.

Good morning, I am paying taxes in the UK and do have double citizenship (Spanish and British). My parents are planning to donate to my Spanish account £180,000. Then I will be transferring them from my Spanish account to my British Barclays account. 1) Do I need to pay taxes for the donation in the UK? 2) Do I need to pay taxes for transferring money from my Spanish account to my British account? Thank you so much for your help. Have a good day.

Hi,

The transfer of funds from an overseas bank account (whether in Turkey or the USA) to a UK bank account would have no Income Tax implications, unless interest or dividends are generated. If you were resident in the UK when you earned the US consultancy income referred to in your original question, the income should of course be reported in the appropriate Self Assessment tax returns.                            

Tax on savings and investments: detailed information                                                  

Tax on foreign income

Thank you.

Hi,

There are no tax implications in the receipt of a cash gift. Should the cash gift result in interest accruing on the gift, then this would be taxable.

Thank you.

Hi HSS,

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 Alvaro6600,

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.

Hello, I have a question on a donation to my French daughter who lives in England. I live overseas, and the funds of the donation will come from another EU country. Will she have to pay any tax, beyond income taxes on the proceeds of the funds if they are invested. Thank you.

Hi
No.  
There are no income tax implications on the receipt of a cash gift, regardless of whether the gift is from within or outside the UK, 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 ).

Hi, I am getting married in Spain and my family and friends will gift us money to our UK bank account (the only one we have). Do we need to pay taxes or declare it?