Gift tax for cash gift from overseas

My relative in China (non Uk tax resident) would support my family’s life (we are UK tax residents) in UK. They plan to transfer £6k-10k monthly or £80k yearly to my bank account in China. Afterwards, I will transfer the money from my China bank account to my UK bank account. I have questions below : 1. Does it need to declare and pay tax? 2. Do I need to show supporting of our relationship? 3. Can I transfer the money from my China bank account to my UK bank account? 4. Does my relative need to provide any supporting of the source of money in their bank account? If yes, what kind of documents need? 5. Is it any limit amount of money my relative can send me?

Hi A Ahmad,
There is no UK tax to pay on the gift of the real estate property.  
Please obtain a market value of the property at the time the gift tranaction takes place.
Using the official exchange rates here:
Exchange rates from HMRC in CSV and XML format
Convert the market value to pounds sterling.
 Keep a note of this, so that if you dispose of the asset in the future and you are a UK resident at the time, you will have this information to help you calculate if there is any Capital Gains Tax to pay on the disposal of the asset.  
There is a good calculator  here:
Tax when you sell your home
This will will help you work out if there is a Capital Gains Tax to pay.

 

Hi, I am a UK citizen living in Canada. I want to gift around £200,000 to my mother in the UK who does not currently have enough money to retire. Would tax be payable on this gift? Thanks.

Hi megus77
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
Thankyou.

Hi Juan Mejia,

There are limits to the amount of currency that can be brough in to and taken out of the UK.  

Have a look at the guidance at:

Take cash in and out of the UK

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 Marcin S
She may be liable to capital gains on the property as she has not lived in it for the whole period of ownership.
See guidance at:
Tax when you sell property
For the money given to you as a gift, you do not pay tax on this unless it generates interest or dividends.
Thankyou.

Hi Kmtc,

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

There is no requirement to prove that the money being transferred into your bank account is a gift. You could retain bank statements showing the gifts.

Thank you.

Hi Oldtim Hmrc,

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

There is no requirement to prove that the money being transferred into your bank account is a gift.  You could retain bank statements showing the gifts.  

If any of the money transfer to the UK, from your bank account in China, is from income you generated while resident in the UK, then it will be taxable. If it is money from a gift, then it would not be taxable.  

You are free to transfer money from your Chinese bank account to a UK bank account and there is no limit.  

Your relatives do not need to provide supporting evidence of gifts they have made. They may wish to retain records of the gifts.

Thank you.

Hi jo123,

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 I am resident in UK and on skilled worker visa. My sister wants to gift me £100000 in India and I will get this money transferred to my Uk bank account . Pl confirm if there is any income tax on this or do I have to report this to anyone ? Also my friend wants to gift me £100000 from Dubai to help me to buy a house in UK. He will transfer this amount to me in my uk bank account . Will there be any tax on this amount and if I have to report this to HMRC ?

I am living overseas and not a UK citizen. I want to give a big sum of my savings to my spouse and my kids, who are BNO visa holders in the UK. Do they need to pay any tax? If so, what is the allowance before they are required to pay any tax. If not, how about inheritance tax in future?

Dear HMRC, I am a Swedish UK resident and hold British citizenship. I am due to receive a cash gift of approx. £100,000 from my father in Sweden, what is the procedure for declaring and paying tax on it? Many thanks.

Hi, I am an Italian citizen living in UK for 4 years and paying tax in the UK. I will receive 500,000 euros as donation from my dad, who resides in Italy. This will be registered by an Italian notary according to Italian law and complying with Italian tax laws. I will then transfer this money to the UK and use it to partially repay a UK mortgage. Do I have to declare this amount in the UK? Are UK taxes due on it? Thanks Mike

I am a dual UK/Canadian Citizen living and working in Canada (past 16 years). If I wished to gift my nieces in the UK, money over £3,000.00 would they need to pay tax on it? If so, what would the rate be? What if they used it towards buying a house? Thank you

Hi My husband lives overseas, visiting a few days a year. He wants to help me with the purchase of a property in the form of a gift of cash he has overseas by transferring them to my UK account. I am a UK resident non-dom. Will the money be considered remitted by me and therefore liable of taxes?

Hi I am an UK Tax Payer and resident in UK. My brother from Ireland wishes to gift me a sum of money which will be approximately over £50,000. Can you confirm that I do not need to pay income tax on this and I can have it transferred to my UK (Stg) bank account. 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.

Hi Jacqueline Mogford, 

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,

There is no tax liability in moving money from a UK bank account to a foriegn bank account and vice versa.  

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.  

There are no tax implications on the giving or receipt of cash gifts, but you may wish to speak to inheritance tax regarding any inheritance tax implications How Inheritance Tax works: thresholds, rules and allowances and Inheritance Tax: general enquiries

You may also want to review the guidance here How Inheritance Tax works: thresholds, rules and allowances

Thank you.

Hi JulBom,

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.