Gift tax for cash gift from overseas

Hi
 

Kristi00 Gul ,   You may be subject to a version of capital gains tax in the country that the property is located.  In addition to this, you may be subject to capital gains tax in the UK, where you can also claim a foreign tax credit relief.  All parts of the calculation must be in pounds sterling.  Using the official exchange rates in place at the time of purchase, you need to work out in pounds sterling, the buying price and costs.  Using the official exchange rates in place at the time of disposal, you need to work out in pounds sterling, how much the property was sold for and the selling costs.  As both buying and selling are now in pounds sterling, can you subtract the buying costs from the selling costs, to arrive at the gain.  If the gain is above £12300 annual exempt allowance, you will pay tax on the balance, by reporting the gain in a self assessment tax return.  The official exchange rates can be found at : Exchange rates from HMRC in CSV and XML format      . Thank you.

Hi
 

Myselfassessment,   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 Andres Torre,

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. 

 

Good evening, My partner and I are both UK tax paying citizens and we are looking to purchase a home in the UK. My parents live in Jersey, Channel Islands and would like to gift us £250,000 to help us with a deposit. The source of funds can be verified and tracked with the bank. Do I have to declare this, do I get taxed for it, are there any other implications?

Hello! I am on Temporary Creative Worker visa, receiving a salary monthly from my job in the UK. I received £4000 in cash for my birthday and was wandering if it would cause a problem to deposit it in my UK account? Thank you

My dependent is a full time university student (BNO 5+1 dependent visa from Hong Kong) and does not work in UK now. I gifted her a lum sum of cash before entering into UK in order to support her tuition fee, rental and sundry expenses. She placed all the cash into the bank account for fixed depsosits in order to earn monthly interest. Does she need to file the self assessment tax return about the interest income that was arrived from the Fixed Deposits?

I am resident overseas and want to give my two sons who are U.K. citizens and reside in the U.K. £250,000 each. Will they be required to pay any tax ?

Hi Tony Yang,

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 BBO2,

Gifts of cash from parents overseas have no Income Tax implications, and do not have to be reported to HMRC. However any interest arising when the funds are deposited in your bank account may be taxable.                                                                            

Tax on savings interest

Thank you.

Dear HMRC, My father lives abroad and has no ties to the UK. I am a UK resident. He will give me GBP 300'000.- by bank transfer in the next few months. Would I have to pay any tax on it? Thank you!

In addition to my post above, I'd like to understand if there would be any inheritance tax due on any cash gift from overseas. Thank you!

Hi Julia,

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 F Chan,

If the cash has been deposited in a UK bank to earn interest then no. If it is foreign interest then a return is required.

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.  

Further guidance can be found here.

Tax on savings interest

Tax on dividends

Thank you.

Hello, I am EU CItizen (Polish) with settled status, been living here for 17 years. I am working and paying taxes here in England. My mum wants to gift £4000 to me she is living in Poland, living and paying taxes there. I believe there is a £3000 allowance each year, will I have to pay tax on an additional £1000 then? Would appreciate your help answering this. Thank you

Hello HMRC, My father who is in Pakistan (not a UK citizen/ resident) wants to gift me some real estate property. I understand that as a gift it will not be taxed, but if there are any capital gains that I realize on this later will be taxed. Is this understanding correct? Also couple of questions in this context. 1) Do I need to report this gift to HMRC 2) Is there a limit of value for this gift beyond which this will become taxable for me? 3) If I am a non-domiciled individual in UK, how does it change the above? Thanks a lot for your guidance on this.

My mother is coming over to visit from South America where I’m from. I’m now a British citizen, and she wants to bring me some of her savings she has in dollars in cash as a gift. I will then put them in the bank. Does this cause any tax for me?

Hi there, I'm UK Citizen from Poland with citizen settlement status. I'm UK tax payer and I'm full time employed. My mum moved to the UK almost 2 years ago and have pre-settlement status, currently full time employed in the UK and tax payer in the UK. She's selling her residence house in Poland and she's planning to give me half of the money (around £35,000) as a gift from her Polish Bank account to my Polish bank account. Does she needs to pay any tax due to property sale ( she's currently renting in the UK). Do I need to pay any tax on the money she's going to give me as a gift if I'm going to do online transfer to my UK bank account? Also do I need any proof from the solicitors that the transfer is a gift? does she needs to proof the money from overseas are from the property sale? much appreciate your help. Regards Marcin S

Hi Benjamin, 

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 HMRC Admin 25 I am BNO visa holder and now studying in the UK. I have a situation that my parents gift me living expenses and future buying of real estate from abroad bi-monthly. Do I need to pay tax and how could I prove that are gifts? Thank you very much. Regards, Thomas