Gift tax for cash gift from overseas

Hi s n
There are no income tax implications on the transfer of the money, but if it generates any interest in your account then you will be subject to tax on the interest.
Tax on savings interest
Thankyou.
Regards.

Hi Ellena,

There are no Income Tax implications on the receipt of money as a gift unless this is invested and generates either interest or dividends. The interest and dividends would then become taxable. You can see more information here:

Tax on savings interest

Tax on dividends

Thank you.

Hi Bryson Doers,

There are no income tax implications on the receipt of cash gifts unless they are invested and generate either interest or dividends. These would be subject to tax.

Thank you.

 

Hi, My brother will send me £ 500,000 for me and my husband from overseas for family support. £ 300,000 with one transfer to buy house and £ 3000 monthly. Just wandering will I pay any tax?

Hi
There are no income tax implications on receiving a cash gift.
However tax will be due on any bank interest accrued on the amount .
Thankyou.
Regards.

Hi. I'm a Turkish citizen living and working in the UK. I'm not a UK citizen. We are thinking to buy a house and my father gifted me £25,000. My father lives overseas and he is also not a UK citizen. I understand that no income tax due on a gift of money from overseas unless it generates interest and I don't need to declare this amount to HRMC. My question is, do I need to pay inheritance tax if my father dies within 7 years? I'll also be paying inheritance tax in Turkey so I wanted to double check if I'll also be taxed for this amount in the UK? Thank you for your answer.

Hello, my father is uk citizen planning on living abroad permanently and he will open business abroad and send me money to live on around maybe 100000 and pay my uni expenses from abroad. Will he need to pay any tax on money he sends to me for these reasons

Hi, my sister and brother in law would like to send me some money as a gift from Malaysia. Is there a limit and will I need to declare it to HMRC for taxation? Thank you in advance. Regards HH

Hi, my brother resides in the USA and wants to gift me money. Do I have to pay tax/declare it? Thanks

Hi
 

Osman Tezgel,   We can only answer queries relating to Income Tax.  Please contact the Inheritance Tax office for an answer to your question : Inheritance Tax: general enquiries    . thank you.

Hi
 

Abdullah2999Anmed,   There are no income tax implications on gifting money.  There may potentially be Inheritance Tax you can contact this office to discuss your query : Inheritance Tax: general enquiries    . Thank you.

Hi
 

HelenC ,   There are no income tax implications on cash gifts from family. You are not required to declare this as income.   However please also enquire with the Inheritance Tax office incase this is subject to inheritance tax in the future - : Inheritance Tax: general enquiries  . Thank you.

Hi
 

jenny.reynolds77 ,   There are no income tax implications on cash gifts from family. You are not required to declare this as income.   However please also enquire with the Inheritance Tax office incase this is subject to inheritance tax in the future - : Inheritance Tax: general enquiries  . Thank you.

Hi, If I am UK resident and non-domicile, and my parents (non-UK resident, non-domicile) will transfer £100K cash from their joint bank account in Singapore to my bank account in the UK as a gift. Based on the discussions above, my understanding is that (1) it is not a taxable transaction, and (2) I do not need to report the cash gift to HMRC. Is it correct? (Note that I will use the cash to purchase buy-to-let property which will generate rental income for me, but my parents will not receive any interests from the property and they will not live in the property or rent the property from me) However, someone told me that I do need to report the cash gift to HMRC, citing page 6 of SA106 (Box 42) where it states “If you’ve received a benefit from a person abroad, or you’re chargeable on a benefit received by you, a close family member, or you’re the recipient of an onward gift that is matched to protected foreign source income, enter the value of the payment”. Could you please clarify whether I need to declare the cash gift from overseas to HMRC? If I receive the cash gift from my parents overseas, will it be regarded as my “foreign income”? Thank you.

Hi, My friend who lives in the Netherlands will get 35000 euros from his uncle who lives in Scotland, UK. Is this gift from his uncle taxable? I.e. does his uncle has to pay taxes? Kind regards, 

Hi YYZ,

There are no Income Tax implications on cash gifts from family members, only tax on any interest this accrues from the bank account once transfered.  

It appears SA106 box 42 relates to assetts and benefits transfered from abroad, therefore there is no requirement to complete this section as it is a gift of money.

Please check with the Inheritance Tax office with regards to the cash gift as we can only comment regarding Income Tax:

Inheritance Tax: general enquiries

Thank you

Hi Niels,

There are no Income Tax implications on the receipt of a cash gift unless the income 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.
 

Dear HMRC My client took some loan out from thier UK bank account and put that money in thier Indian bank account. Although interest is being generated for these funds in India they don't bring any of those interest funds to the UK. Do they have to pay tax on this interest income even though they don't bring this money to the UK.

Hi Domino1,

The remittance basis is an alternative tax treatment that's available to individuals who are resident but not domiciled in the UK and have foreign income and gains.
Remittance basis is not available if you are deemed domicile in the UK.  
Therefore if this amount is not sent to the UK it does not need to be declared. 

Thank you.

Dear HMRC Thank you so much for coming back to me. They are domiciled in the UK. Does this mean they don't have to pay any taxes? As mentioned above they do not want to bring this money to the UK and all the interest they receive is in the Indian bank. They don't use it in the UK.