Gift tax for cash gift from overseas

Hi niedc,

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.

Hi, My wife and are looking to buy a flat and her parents are sending the down payment as a gift from overseas. They are based in the United States. Do we owe any tax if they gift us the down payment? Also, is there an amount or threshold that would be taxed? I read somewhere that 250,000 GBP is the treshold. Thank you!

Same question as above - I'm a UK tax resident, non domicile, parents are gifting us a sum to help buy our first flat, is there a threshold above which it is subject to tax? Do we need to retain any records of the transaction (what exactly)? Thanks

An ex pat now living in Thailand, and has done for about 8 years, has gifted me money. As he's non domicile, I understand that this is not subject to inhetitnace tax. However, this money was gifted from his UK bank account, does the same rule still apply, is it still exmept from inhertitance tax.

Hi Sammy Tchalaby,

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. You can see guidance here:

Tax on savings interest

Tax on dividends

Thank you. 

Hi Barak,


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 mrskeeter,

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

Inheritance Tax: general enquiries

Thank you.

Hi, I'll arrive in the UK next week with BNO visa. My partner who is still working in Hong Kong plans to transfer a sum of money as a gift to me later in the year for buying a property. I understand that there is no tax due for income tax purposes on the transfer or gift of money unless it generates interest in a bank account, and such interest would then be subject to income tax. However, is there an annual maximum limit for such gift money for tax-free purpose?

Hi, I am a BNO Visa holder and living in UK now. My brother is a HongKonger and he is living in Hong Kong. He will support our living as well as my son's school fee in UK. He will gift me around £5000 to £6000 in cash every year. He will transfer this cash gift to my account in HK dollar and I will convert it in GBP to pay our living costs. I have 2 questions. 1) Do I need to declare this cash gift in the tax return and pay the tax? 2) Does my brother need to declare this cash gift in written in case tax department questions me? Thank you. Best regards, Lee Pui Yee

Hi, am a Romanian/Ukrainian citizen residing and working in the UK (with pre-settle status) over 4 years. 1. I have a property in Ukraine in which I invested money 3 years ago (which was taken from selling an investment before) and only this year the property was fully built and I am getting ownership rights. It should be my first property for living but now I decided to live in the UK and I want to bring all the amount after selling to the UK - around 30000 GBP. My question is if it is liable to tax, and how much Tax should I pay? 2. My father has similar property and will sell it to gift money to me(around 250000 GBP). I would like to use it as a part of my mortgage deposit in the UK. I have read already that gifts cash from overseas are not liable to tax, but I want to ask which evidence should I show to HMRC? My father will have a Contract about the sale, and I will have a notarised Certificate for gifted money, money will be in cash. Is it enough? Your answer is highly appreciated!

Hi  

Pui Yee Lee ,   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   .   You do not need to declare the cash gift, nor does your brother  . Thank you.

Hi Ugo A,

There is no limit on the amount that can be given as a gift for tax free purposes.

However, this will be taken into account for inheritance tax purposes should the giver of the payment pass away within 7 years.

Thank you. 

Hello, Just a slight variant of this question. My parent from overseas are providing me a gift for mortgage payments. Is it okay they transfer to my US account first then I do the transfer from there? I’m trying to avoid giving them the headache of figuring out an international transfer

Hi Krist00 Gul

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. You can see further guidance here:

Tax on savings interest

Tax on dividends

Thank you.

Hello, My mother (french citizen and french tax payer) is gifting me a french life insurance policy (£500k) . The full amount is to be withdrawn from the policy as soon as I become the registered owner and sent to my UK bank account in order for me to purchase a house (main residence) in the UK. I am a UK resident and tax payer. Would this operation attract any UK tax and if so, how much? Many thanks

Hi, and thank you for a previous reply! But could you please explain me about tax if bring money from abroad from selling my property? I am a Romanian/Ukrainian citizen residing and working in the UK (with pre-settle status) over 4 years. 1. I have a property in Ukraine in which I invested money 3 years ago (which was taken from selling an investment before) and only this year the property was fully built and I am getting ownership rights. It should be my first property for living but now I decided to live in the UK and I want to bring all the amount after selling to the UK - around 30,000 GBP. My question is if it is liable to tax, and how much Tax should I pay?

Hi, I am a U.K. citizen and my father (Indian citizen residing in India) wants to gift about £6,500 from his Indian bank account to my U.K. bank account. Will there be any tax implication on this transaction? I understand that I would need to pay the income tax on any interest I would receive on this amount.

Hi, My parents are giving me 150K EUR to my Spanish bank account. I am a UK resident and tax payer, do I need to pay taxed on that money gift in the UK? can I transfer that that money from my Spanish bank account to my uk bank account with no issue and no tax implications? Thanks 

Dear team, I am receiving money from a friend in Dubai of 130000 pounds. Will I be taxed on this?

Hi
 

Henry45 ,   You may need to report this gain in a self assessment tax return.  Please take a look at helpsheet HS321 : HS321 Gains on foreign life insurance policies (2022)   .   Some policies are taxable and some are not.  If in doubt, contact the policy provider for advice . Thank you.