Gift tax for cash gift from overseas

Hi I will be a tax resident after23th January. And I have some questions. 1) I have some cash and gold keep at my oversea house which my relative live in there. We do not receive rent from them. I am deciding transfer these to money and put them in my UK account. How can I prove these money is what i earn before I become tax resident? Any tax raise at this situation and should I do it before I became a tax resident? 2) I have some money saved at my oversea account. If I keep them at my oversea account and not transfer in Uk, will there any tax raise? And If I transfer them into my UK account some years later, will there any Tax? Thanks.

Hi,

You are not charged on capital income unless it was earned as a UK resident and you have not declared this under the remittance basis, at which point the income is taxable once brought to the UK.

As a UK resident you are liable to tax on your worldwide income whether brought to the UK or not.  

You can find further guidance here:

Tax on foreign income

Thank you.

Dear HMRC, I am a BNO(Visa) holder, now resident in UK, just landed in UK for 2 months. I have just received cash gift worth £1million from my dad who lives in Hong Kong. Do I have to declare this and do I get taxed for it?

Hi, I am a Hungarian citizen tax paying UK resident. My mom came to visit me at Christmas from abroad and she gifted me £5000 in cash. Do I have to declare this and do I pay tax on it? Also she wants to gift me £5000 every following year and she wants to transfer money from her bank account in Hungary to my UK bank account. My question is the same: do I have to declare this and do I pay tax on it?

Hi
 

Anita Nagy,   You do not need to declare this gift. however you may need to pay tax on any income you generate from the gift such as savings interest. Thank you.

Hi MarvinK,

Gifts do not need to be reported for Income Tax purposes.

If this money generates interest or taxable income then that part will need to be reported. 

Thank you.

Hi, I'm a tax paying UK resident under the EU settlement scheme expecting to receive a sizeable cash gift from parents who live abroad and are not UK residents. I understand that this cash gift does not need to be declared in my tax return and it will not be taxable as long as it does not generate any income such as interest from a savings account. Can you confirm a) if my understanding is correct, b) if this is the case irrespective of the amount received as a gift, and c) is there a need to notify my bank ahead of the transfer to avoid any potential scrutiny? Thank you in advance, CG

Hi,
 

Yes your understanding is correct, and irrespective of the amount. Cash gifts are not taxable for income tax purposes. You would need to speak direct to your bank regarding their own rules on the transfer.  Thank you.

Hi. I am a UK citizen and I have received a cash gift of $25,000 from my brother in the Ukraine. I wish to put this amount into a UK cash ISA. Do I have to declare this amount when travelling and am I liable to pay any tax on it? Many thanks.

Hi, Anne

There are no Income Tax implcations on this money so it does not need to be reported for Income Tax purposes. 

Thank you.

Hi, I am uk resident and uk citizen from last year. My dad Portuguese resident and French citizen would like to send me a gift cash of £100,000 ( is there any threshold or maximum ). From my reading on the forum about same type of question there is no tax due as the gift amount is receive from oversea and I only need to pay tax on the interest earned as usual taxation. But my question is : it is not consider as inheritance? And therefore need to be declared ( how) and tax is due only if my dad dies before 7 years after the date of the gift? Or is not consider as inheritance. Thanks to clarify

Hi,
 

You are correct in terms of income tax purposes. You would need to contact our inhertiance tax team for any inheritance tax rules: Inheritance Tax: general enquiries    . Thank you.

Hello, I am 1/6 of beneficiaries who inherited my aunt’s owner-occupied property after she died. But due to various reasons, the property hasn’t been sold until now but hopefully by end of 2022. As my sister is the executor of my aunt’s will who, as advised by a solicitor, will first receive the whole sum of money after the property is sold, then will distribute the monies to the other 5 beneficiaries including myself. I’m a BN(O) visa holder who will migrate to UK by late March 2022. I have the following questions confusing me and appreciate very much for your clarification. 1) If my sister transfers my part of money (est. £300,000) from her HK bank account to either my HK or UK bank account after I entered UK, do I need to declare and get taxed on it? 2) Would it be relevant whether I’m a UK tax-resident or not at the time I received the money? As I’m not very sure when will I become a UK tax-resident, as some say after 183 days, while others say can be earlier but case by case.

To supplement the post above, my aunt is a HK resident and without UK assets before she died. Sorry about the confusion. Many thanks!

Hi raindrop wong,

In answer to both your questions.

Any income received in connection with a will would not be subject to tax for income tax purposes, regardless of your residency status.
You may wish to speak to out inheritance tax team for any of their guidelines:

Inheritance Tax: general enquiries

Thank you.

DEAR HMRC, Does it matter if a cash gift from a non UK resident, non UK citizen to a UK domiciled person is made to that UK domiciled person's UK bank account or to that same UK domiciled person's foreign bank account? I read somewhere that it could make a difference. Also, does the 7 year inheritance death rule apply in the case of cash gifts to UK residents from non resident non UK citizen gift givers? Thank you
 

Hello, I am a Colombian National residing in the UK with settled status (which I got because my husband is Irish). My mom, a Dutch National living in the Netherlands, wants to transfer £30,000 to my bank account as a gift for us to put a deposit on our first house. Am I correct to assume that, since the money is a gift, I will not have to pay taxes on the full £30,000 but only on the interest that it will generate in my savings bank account? Thanks! Laura

Hi, I'm a BNO visa holder living in UK, and I'm paying tax in UK. My parents in Hong Kong are planning to send around £100,000 money to me as a gift for me to buy a house here. Do I need to pay tax? Thank you.

Hi David Green,

In terms of Income Tax this does not matter, but you may wish to speak to our Inheritance Tax team regarding cash gifts.

How Inheritance Tax works: thresholds, rules and allowances

Inheritance Tax: general enquiries

Thank you.

Hi
 

Laura Gutierrez Gomez,   There would be no income implications on this as gifts or money are not subject to income tax. You will need to declare any interest generated however. Thank you.