Gift tax for cash gift from overseas

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 
There are no tax implications from the transfer of the cash gift into the UK.
Thank you.

Hi Paul Collins,

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 are no UK tax implication from the transfer of money from a foreign bank account to a UK bank account. Bringing cash into the UK is a different matter.

Take cash in and out of the UK

Thank you.

Hi, My friend in the United States would like to send me £100,000 as a present. I am a UK citizen and tax payer. Will I need to pay tax on this gift?

Hi Paul,
No, the gift itself is not taxable.
Any interest or dividends that the gift generate after you receive it, are taxable and should be declared.
Thank you. 

Hello, a bit of a different / interesting one here. My parents are both British Citizens, born in U.K. but lived in Zimbabwe from 1950’s onwards. (from when they were young). I am British Citizen, born in Zimbabwe, moved to the U.K. in 2001. I have been domiciled and resident in U.K. since. In 2001 Zimbabwe started to deteriorate and we all left. I came to the U.K. / my parents bought a yacht and have been sailing on this yacht in the Caribbean for 22 years. They have no fixed abode and are not resident / domiciled anywhere. (When they left Zimbabwe they lost their residency there) They have land and assets in Zimbabwe that we’re likely about to sell. As part of this process my father wants to gift me all of it. It’s potentially a large amount of money in excess of £400k Do I need to declare this amount and is it taxable? Is a letter from my dad saying he is giving me this gift the only paperwork we need on this? Is there anything else we should be doing to ensure we act within the law on this?

Hi YTT72 TRT,
There are no tax implications on the giving or receipt of cash gifts, unless the cash gift generates interest or dividends.
hese would then potentially be subject to tax.  
You you may wish to contact the Inheritance Tax team regarding any Inheritance Tax implications
How Inheritance Tax works: thresholds, rules and allowances
Inheritance Tax: general enquiries
Thank you. 

 

Dear HMRC, My husband and I arrived in the UK from Hong Kong two months ago. He has bank accounts A and B for clean capital and bank account C for his Hong Kong salary, as he is still working remotely, earning 50,000 HKD for two more months. I have bank accounts D and E for clean capital. All the mentioned accounts are based in Hong Kong and in HKD. 1/ We discovered that bank account A earns interest. Does this make all the accounts (A, B, and C) mixed funds? The interest amounts to a total of 500 HKD. Can we gift this amount to a friend's account to avoid it being considered a mixed fund and restore its status as clean capital? 2/ We plan to use the remittance basis for taxation. How will the mixed fund in bank account A affect us in this regard? 3/ My husband then transferred 10,000 HKD from bank account A to my bank account D in HKD, and I subsequently transferred that amount to GBP in my new UK bank account F. Does it count as cash gift? Do we need to pay tax on this transfer? If so, who is responsible for paying it, me or my husband?

Hi HMRC I am BNO VISA holder to arrive UK in April 2022. My mother is my dependant of BNO VISA, who live in "Hong Kong" now. 1) My mother transferred money to me as a gift from February to July 2023 in support of family. Is it required to pay any income tax? or other tax? My other intended to come to UK and live with me after in August or September 2023. She will stay at UK thereafter. 2) My mother transferred money to me as a gift before August 2023. Is it required to pay any income tax? or other tax?

Dear HMRC, I am a tax paying UK citizen. My uncle, a US citizen, would like to gift me £7000 through a bank transfer. Would I be paying tax on this amount?

Similar situação as above but non domiciled. I’m non-domiciled and my dad wants to gift me 25,000 to help me pay my mortgage. I’m I right to assume that I’ll not pay tax nor need to declare it,

Hi. I am a UK citizen /resident and pay tax through PAYE as an employee. I am considering making cash gifts above £3,000 to a sibling to provide them with a nest egg and reduce the size of my estate. I understand that the first £3,000 of any cash gift would be tax free and any amount above that could be subject to Inheritance Tax on my estate, possibly on a tapering scale, if I die within 7 years of making each gift. After my death, my executor would be required to declare any gifts. I also understand that my sibling would not be required to declare receipt of the gifts because they are not taxable, although any income they derived from the gifts would be taxable. What I haven't been able to find out is whether I must declare making the gifts at the time I make them and if I do, how I do it. Any help would be appreciated.

Good morning, I am a UK citizen and my In laws from India wish to give us gift of £30000, would it be taxable to me if they transfer into my bank account?

Hello. I’m resident in the UK for tax purposes and a friend in Europe will send a cash gift to me so I can buy a property here. Will this be tax free even if a considerable amount? Thank you.

Hi EVW,

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 Dave Smallwood,
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 mary man,

The UK double taxation treaty with Hong Kong, allows for interest accrued in Hong Kong, to be taxed in the UK.  
This will only be interest accrued since moving to the UK.  
Interest earned before that date is taxable in Hong Kong.  
Even if you gift that part of the interest taxable in the UK to a friend, you would still declare the taxable interest on a tx return.  
As this is foreign interest, you would declare this on a self assessment tax return, but the guidance at section 9 of RDR1 might apply.
(Guidance note for residence, domicile and the remittance basis: RDR1 Updated 25 April 2023).  
The remittance basis requires the completion of a self assessment tax return and SA109.  You declare the unremitted income / gains on page 2 of this form boxes 28-40.

Thank you.

 

Hi Sha Sha,
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 Shehryar Malik,
There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.z
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 a US resident and would like to provide a cash gift to a friend in the UK. Can you tell me (1) the limit of the amount I can provide without my friend having to pay UK taxes, (2) whether any type of legal document is required to demonstrate that this is a gift, and (3) the best/cheapest way to transfer the funds without having to pay transfer fees or cross-border fees.

Hi xpto-user-9751,
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.