Gift tax for cash gift from overseas

Hi I lent my brother £500,000 in Singapore last year . Now ,i am UK Tax resident, my brother will return me £3000 from Singapore bank to my UK bank every mouth in 13 years. Would I need to declare this and are there any tax involved? Thank you.

Hi Yanng 1229,

There are no UK tax implications on cash gifts received from abroad from relatives or friends, however tax may be due on any interest generated from this income.

Thank you.

Hi hokmanli,

You should declare any loan interest paid to you by your brother, otherwise, there are no tax consequences.

Thank you.

Hi 1. If I inherit a property in India from parents and then sell the property and bring the money in the UK, do I pay taxes on that in the UK? I am a UK citizen living in the UK. Parents are Indian citizens living there. 2. If my father-in-law gifts cash to his daughter (my wife) I understand there is no tax liability here. However, if that money is invested into a Child savings account (for our child, 11 yrs old) and earns interest thereof, does that become taxable? 3. For that reason above (i.e. if the interest becomes taxable), is it better to have the money sent to the Child's account directly? Thanks for your attention and reply.

Hi, I live an UK resident over 183 days now through BNO (Visa) route, my Sister with Gift me GBP260,000 to support me to purchase a property in coming future, do i need to pay taxes on this amount? thanksyou

Hello, I'm a British citizen and want to buy a house in the UK. My mother and sister who are Indian citizens would like to transfer some funds from their Indian bank account to my bank account in UK as gift (£100,000 each ) so it will help me to buy a house in UK. I would be grateful if anybody can provide some guidance around tax implications - will I have to declare this to HMRC and do i have to pay tax on this amount and if so how much? Thanks in advance

Hi Deep G,

As a resident of the UK you are liable to Capital Gains Tax on the sale of overseas property, you can find more information here:                                                    

Selling overseas property                       

You are correct in stating that although gifts of cash are non taxable, any interest arising when the money is deposited in an adult's bank account should be declared to HMRC.  

Please refer to the guidance below for information on money invested in a child's bank account.                      

Interest on savings for children        

Thank you.                                               

Hi frankie fung,

Cash gifts are non taxable and you do not need declare this.  

However you may wish to contact the Inheritance Tax office for advice on any Inheritance Tax implications:

Inheritance Tax: general enquiries

Thank you.

Hi there, I’m a UK citizen, my aunt in the US wants to gift $100,000 to my brother and I. Do we need to declare this and pay tax in the UK? Our intention is to use it for building works on our respective houses.

Hi S B
You would not be required to declare the income or pay tax on it, there would only be tax due if any Interest arose from the income.
Thankyou.
Regards.

Hi Lauren
There are no income tax implications on gifts received unless this generates interes in a bank account. 
Thankyou.
Regards.

Dear HMRC team I am a British Citizen and my wife is Indian Citizen who lives with me in the UK on a spouse visa (Biometrics Residence Permit). As we will be living in UK permanently (she will be eligible to apply for UK permanent residence in 2024), she wants to gift me her savings, money she received from her parents for our wedding that amounts to total of approximately £90,000. This money is currently in India in her Indian bank account. Please advise if I need to declare the money when I receive it in UK and would it be taxable? Many Thanks 

Hi,
 

There are no tax implications on gifting money.  However you may pay tax on any interest you accrue on the funds.

Thank you.

Hi, I am an U.K. tax resident and my father is in Hong Kong, non-U.K. tax resident. He is going to gift me £50K for my new home. To my understanding, there is no tax issue for this gift money and only the interest arises is taxable. My question is would there be any different if 1. My father transfers the gift in Hong Kong dollar to my Hong Kong bank account and then I remit to my U.K. bank account, and 2. My father remits the gift in GPB directly to my U.K. account? Many thanks in advance for your information.

Hi, I am a BNO visa holder (~1year) who was previously Tier 2 (~4years) holder. My mother wishes to gift me GBP 300k following a property sale in HK. If she sends me this money (via money transfer or HK bank) to my UK bank account will I be liable for any income tax? Is there any limits if she wishes to gift to me further in the same tax year? Thanks

Hi, I am British Pakistani Citizen. My brother who lives in Pakistan has been saving up money for his future plans of getting higher education from Canada. However, he is worried that due to declining Pakistani currency value, it will cost him more by the time he is ready to go for study abroad. So, he wants to send me his money to be converted and kept in British Pounds in the UK for the time being in my account until he is ready to go abroad and take that money back from me for his studies. Will I be taxed on that money if my brother transfers it from his bank account in Pakistan to my UK bank account temporarily for a year or two may be?

Hi A friend abroad wants to send me money every now and then as a gift, do I have to pay tax on this or will it be flagged as suspicious? She’s planning on doing it through bank transfer

Hi
 

K.C,

There are no income tax implications on gifting money to a famliy member.  Yes you are correct, any savings in your UK account may attract interest and this will become subject to income tax.

Thank you.

Hi there, I am a uk resident who is receiving monthly allowances as a gift from my partner who lives and works in Bermuda (he is Bermudian). He also has UK citizenship due to Bermuda being part of the commonwealth. Is the monthly allowance I receive taxable in anyway?

Hi AL,

You will not pay tax on the cash gift however you will be liable to report any interest that may arise from your bank account.

Thank you.