Gift tax for cash gift from overseas

Hi, I were born in Hong Kong and came to UK in April 2022. My mother is going to gift me with £100000 in July 2023. I will use the money pay for renting cost of a house in Hong Kong for her living. May I know if my mother dead within 7 years, Will I be charging for the Inheritance tax ? Thank you

Dear HMRC, I am currently in the UK under Skilled Worker Visa. My husband will be joining me in the UK as my Dependant. I would like your advice regarding money transfers from husband to wife. We are both from the Philippines but he is currently working in UAE and he needs to close his bank account there once he moves to the UK. Can he transfer his savings to my bank account first as he does not have a UK bank account yet? Will we get taxed for it? His savings is approximately £25,000. Thank you and I appreciate all your help.

Hi, I hold a BNO visa and is now living in UK. I have transferred HKD400,000 to my mother;'s bank account in Hong Kong 1 year ago before I go to UK. And now my sister would like to send me back the money with HKD100,000 each time (in 4 difference periods) on behalf of my mother. She will send the money to my Hong Kong Bank Account and I will transfer the money to my UK bank account. There is no interest income generated. Will there be any tax implication? And is it subject to taxable income in UK? Thank you.

Hi edgarcmwong,

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 Income Tax.  

Further guidance can be found here:

Tax on savings interest

Tax on dividends

If your mother becomes resident in the UK, there may be Inheritance Tax implications, but you may wish to speak to Inheritance Tax team regarding any Inheritance Tax implications.

How Inheritance Tax works: thresholds, rules and allowances

Inheritance Tax: general enquiries

Thank you.

Hi
 

handogMD,   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    and  : Tax on dividends    . Thank you.

Hi Yauhei
There are no tax implications of transferring money from a foreign bank account to a UK bank account, unless that money generates interest. The interest would be subject to tax.
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
and
Tax on dividends 
Thankyou.
Regards.

Hi, HMRC admin Thank you for your answer. And may I follow up the question I were born in Hong Kong and came to UK in April 2022. My mother and three sisters are living in Hong Kong. My mother is going to send me £100000 in July 2023 and hope me to manage those money. I will use the money pay for renting cost of a house in Hong Kong for her living. Also, I will split some of that money and help my sisters regularly. And if my mother pass away, I will divide the remaining money and transfer to sisters. May I know in the above situation, will the money will count as gift to my sisters. So I need pay for tax ? Thank you very much Kind Regards

Hello I am a British national and my parents are Indian citizens with their tax domicile in India too. Am I right in thinking that there is no need for declaring cash gifts from my parents? Is there any maximum amount that is permitted in a financial year? Lastly, could I please have confirmation that the "7 year rule" applies to only if the giftor is tax domiciled in the UK? Many thanks

Hi edgarcmwong,

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
and
Tax on dividends

Thank you.
 

Hi wakeyguy

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
and
Tax on dividends.  
If someone who is not resident in the UK dies, inherritance tax is only paid on their UK assets. Have a look at the guidance
How Inheritance Tax works: thresholds, rules and allowances

Thank you.

I'm a UK resident, born abd bred, and a UK tax payer. I have a close personal friend (also UK born and bred) who now lives over seas and is no longer a UK domicile, also no longer a UK tax payer. He's going to send me a monetary gift, from a UK bank account. Is this subject to any form of UK tax, whether that be income or inheritance related.

Actually, could I add to the above question.? Given that he's non dom, would this class as an oveseas gift, or as it's coming from a UK bank, would it be classed as a UK gift. And would either of them be subject to the 7 year rule ?

Dear HMRC I have a friend who are receiving as big sum from his employer as they sold the company and director paid all the taxes on company sold, Now director want to gift to my friend as reward for providing the long services to company.Gift amount will be around £500,000 and bank transfer. My friend is always on PAYE for most his working life. Could hmrc explain any tax relief or hw much tax he need to pay on this Gift.

Hi, HMRC admin Thank you for your answer. And may I follow up the question I were born in Hong Kong and came to UK in April 2022. My mother is living in Hong Kong and never came to UK. My mother is going to send me £100000 in July 2023 and hope me to temporarily manage those money. I will regular transfer back those money to my mother for her living cost( e.g. foods, rent, traffic etc.) assume. £2000 per month May I know in the above situation, will the money will count as gift to my mother. Any exempt for such situation as she is elder parent (>=65) ? Thank you very much Kind Regards

Hi,

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. 

Tax on savings interest

Tax on dividends

Thank you.

Hello. I am a tax paying UK resident, with dual French and British nationalities. I will receive a gift of £10,000 to £15,000 (I don't know the exact amount yet) from my mum who is French (single nationality) and lives in France. The money may be sent directly from my mum's solicitor to my British bank account, OR it may be sent to a bank account in my name in France and I would then transfer it to my British bank account. Either way, do I have to declare this money and will I get taxed for it? Many thanks in advance.

Hi mrskeeter,

There are no Income Tax implications on the giving or receipt of cash gifts, but you may wish to speak to our Inheritance Tax team regarding any Inheritance Tax implications.

How Inheritance Tax works: thresholds, rules and allowances

Inheritance Tax: general enquiries

Thank you.

Hi waqi,

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 Income Tax.  

You can find further guidance here:

Tax on savings interest

Tax on dividends

Thank you.

 

Hi edgarcmwong,

The transfer of the money as a gift is not for HMRC to decide, that is between you are your mother.

There is no tax relief in respect of the payment you give back as it is not related to your employment.

Thank you.

Hello HMRC admin, please could you answer my post above? Apologies for chasing but I've little time to go back to my mum on this, through no fault of mine. I'd immensely appreciate if you could answer so I can be sure to do the right thing. Many thanks in advance.