Gift tax for cash gift from overseas

Hi N/A,

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 PatNick,

There are no Income Tax implications of a cash gift of this nature. Any interest the gift generates, is taxable and should be declared.

You may wish to contact our Inheritance Tax team regarding any Inheritance Tax implications.

Inheritance Tax: general enquiries

Thank you.

Hi MatFrench128,

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 Firuza Normatova,
Yes, you are correct for your questions asked. 
Thank you. 

 

If I receive a gift of £70,000 from a relative who lives in USA and is not a UK resident or citizen, will I have to pay tax on that gift?

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 and Tax on dividends). 
Thank you.

I may receive a ~200k gift from Sweden, are there tax implications? Also, even if there are no tax implications (I have a feeling both Swedish and UK rules say there are not), how do I know which rules I am applying? (I want to follow the correct trail of documents and references, not just get the right answer).

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 a UK National working and living here in the UK. My husband is from South America and has recently moved here on a partner visa (biometric residence permit). We are about to purchase our first UK property under my name and I have two questions about bringing money over from South America to contribute to this: 1. My father-in-law has offered to gift us about 300K into an account I have in South America so that I can bring it over to contribute to the purchase. Am I right to think that as long as this gift does not generate interest in a bank account - i.e if I use it directly towards buying our home as soon as it gets here - I do not need to declare it nor would get taxed on it? 2. If my husband (living in the UK on residence permit) were to bring money over to contribute to the purchase, we understand his foreign income whilst being a UK resident would be subject to remittance tax. But what if he were able to show he had savings (correctly taxed in his home country) from prior to when he became a UK resident, would bringing these savings into the UK to purchase the flat together also be subject to tax/have to be declared? Or would he be able to gift these savings to me to purchase the flat in my name? Thank you so much in advance

Hi Emma A,
1. 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: How much tax you pay.  
2. Please refer to Remittance basis 2024 (HS264) - self-assessment-helpsheet/remittance-basis-2024-hs264.
Thank you.

Hello Thank you so much for your response. We are aware and have reviewed the documents and guidance, including: https://www.gov.uk/government/publications/residence-domicile-and-remittance-basis-rules-uk-tax-liability/guidance-note-for-residence-domicile-and-the-remittance-basis-rdr1 In section 6.5 of this document, regarding earnings, it states: ''6.5 Earnings which are earned: - overseas in a year for which you’re not a UK resident are not taxable in the UK'' Which is why I was wondering if my husband has personal life savings from prior to his UK residency starting in March 2023, these can be gifted to me to help me buy a property as a cash gift from overseas?

Hello HMRC Admin, We are coming from hong kong by BN(O) visa, we moved to the UK about 2 years. 

Unfortunately, due to unstable working hours, I don’t have enough income for family expense. Therefore, sometimes I need to use my overseas (Hong Kong) credit card for family expense in UK. 

My parents who live in Hong Kong knew our financial status, they helped us to settle our overseas credit card statement as cash gift to ease our financial burden My credit card statement is about HKD35,000 in Hong Kong dollars, 
But they transferred HKD50,000, there're HKD15,000 extra payment for that transaction. So I asked the credit card bank in Hong Kong to return the extra payment to them, but they replied they can only transfer back to Hong kong bank account under my name.

 So I transferred back to my parents account when they returned the extra payment immediately. I'd like to ask 

should I need to declare in self-assessment tax return for receiving my family cash gift (HKD35,000) in this circumtance? Thank you for your help. Steve

Hi Emma Alexander
This would not be seen as a gift:
Residence, Domicile and Remittance Basis Manual
Thankyou.

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 and Tax on dividends).   

 

Hello, My parents and I are UK national. My parents are living in Hong Kong and are not tax residents in UK. My parents is looking to send £300,000 from their bank account in Hong Kong to their personal UK bank account and then transfer the funds to me as a gift to help me buy a house in the UK. The source of funds comes from selling their flat in Hong Kong a few months ago. Do I need to declare this gift money in my tax return, show proof of source of the gift money and to pay tax on it？ Would the money transferred from my parents bank in HK to their UK bank account for this purpose attract any UK tax？ Is there a maximum amount on gift money of this kind that I can receive ? Is there there anything else we should be aware of in this scenario? Many thanks for your help. JF

Hello, My parents and I are UK national. My parents are living in Hong Kong and are not tax residents in UK. My parents is looking to send £300,000 from their bank account in Hong Kong to their personal UK bank account and then transfer the funds to me as a gift to help me buy a house in the UK. The source of funds comes from selling their flat in Hong Kong a few months ago. Do I need to declare this gift money in my tax return, show proof of source of the gift money and to pay tax on it？ Would the money transferred from my parents bank in HK to their UK bank account for this purpose attract any UK tax？ Is there a maximum amount on gift money of this kind that I can receive ? Is there there anything else we should be aware of in this scenario? Many thanks for your help. JF

Hi Justin Fung,
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)
Your bank  may require evidence though.
Thank you. 


 

 

Dear HMRC, My parents from Switzerland are planning to send me a cash gift of £250000 to help me buy my first property. The cash would be transferred from their Swiss bank account to my UK bank account. The source of this income is from their salary. What are the tax implications of this? If any? Many thanks, Prasanna

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Hello, I am a UK citizen and resident. My husband was recently diagnosed with dementia. My sister is Canadian and has given me a gift of £130,000 to help in making adaptations to my house for his disability. Do I need to pay tax on this gift?

I am a UK resident originally from the US, and my parents would like to give a gift to my British husband and me for our anniversary. We believe the gift will be tax-free if it is a cash gift, based on HMRC's responses above. But we had some additional queries: 1) Does it still count as a cash gift if it is sent via check or online transfer like PayPal? 2) Is there a limit to how large a gift we can receive tax-free if sent via PayPal or via check? 3) If so, does this limit differ for myself as their daughter vs. my husband as their son-in-law? Thanks very much!