Gift tax for cash gift from overseas

Hi
 

Sammy D,   There are no income tax implications on the gifting of money unless it earns interest in a bank. The interest would then be subject to income tax. You may wish to speak to your bank regarding how to bring the money in.  Thank you.

Hello. I am a UK resident and full-time employee. Our family abroad wants to gift us about £23,000 per year for our children school. The money will be paid to our account or directly to the school. Would I need to declare this and are there any tax involved? Thank you.

Hi,

There are no Income Tax implications for the gifting of money unless this generates interest in a bank account.

The interest would then be subject to Income Tax.

Thank you.

Hello, I'm going to receive a gift of money of £100000 from my parents in Belgium. I'm Spanish but I'm also a UK resident and I pay taxes in the UK. I would like to use the money to pay back my mortgage in the UK. Would that be taxable? Thanks

Hi, I entered with a BN(O) Visa and will be a tax resident. My father in Hong Kong will send me about 30,000 Hong Kong dollars to my Hong Kong bank account every month. I will then convert British pounds and remit the money to my UK account. Do I need to declare and pay taxes? Thank you

Hi,

Gifts of money are not subject to Income Tax, unless this generates interest in a bank account. In which case the interest would be reportable for Income Tax purposes. 

Thank you.

Hello, I am a UK tax resident, my father would like to send me £40,000 from Poland: 1. What happens if he passes away within 7 years (according to the current rules)? 2. What if he uses a currency conversion service,  which uses its UK bank account as an intermediate step? My father's bank account is in Poland and he doesn't own any UK bank accounts. 3. What if I received £40,000 from my brother (UK tax resident) as a transfer from his UK bank account? What would happen if he died within 7 years? Thank you

[Company information removed - Admin]

Hi

There are no income tax implications on the gifting of money but you may wish to speak to inheritance tax regarding the 7 year rule.

They can  be contacted here:

Inheritance Tax: general enquiries

Thankyou.

Regards.

Hello, I have a life insurance policy issued in Hong Kong with my daughter as beneficiary. I will be in Scotland in this year and would like to know whether my daughter needs to pay tax for the insurance payout she receives after I die ? Thank you in advance for your advice.

Hi Yumiee Kwok

Please see guidance here regarding foreign life insurance policies.

You would maybe need to speak to the policy holder regarding who is required to pay the tax once you pass.

Gains on foreign life insurance policies (Self Assessment helpsheet HS321)

Thankyou.

Regards.

Good day, Parents want to send me money from Poland as a gift to help paying off loan £13,500 - That would be bank transfer and I would pay off loan same day. Would I have to declare this money or pay any tax on it ? Kind regards, Tomasz P

Hi Tomasz

There would be no income tax implications here.

You would not need to report this for income tax purposes. 

Thankyou.

Regards.

Hi there, I’m an EU citizen with Indefinite Leave to Remain in the UK. I live and work and pay taxes in the UK (self-employed). I will receive a cash gift worth £40,000-50,000 from my mum who lives in Romania. Do I have to declare this and do I get taxed for it? Thank you very much for your help!

Hi iliemic

There are no income tax implications on the gifting of money unless the money generates interest in a bank.

The interest would then be subject to income tax.

Thankyou.

Regards.

Hi there, I am planning to apply BNO visa and work in the UK. I have a property in Hong Kong and live with my parents. My parents would stay in Hong Kong and they would continue to live in the property. If my parents are going to deposit money of £2,000 per month to my Hong Kong bank account to pay back the mortgage, do I need to declare this and get taxed for it? In addition, the mortgage account is a deposit-linked mortgage account (similar to offset mortgage in the UK). However, instead of reducing the interest paid by offsetting the deposit amount, the full mortgage interest need to be paid and the deposit account would accrue at the same interest rate. Do I need to declare this and get taxed for it? Thank you very much for the help!

Hi,
 

It will depend on whether the £2000 is classed as a cash gift or is classed as rental income. If rental income, which if paying for staying in the house, then this will need to be declared. Please see further guidance: Property Income Manual  . You would need to declare any interest earned on this income while in a bank account.  Thank you.

Hello, I have received 25,000 GBP from as a gift from a family friend's UK account in 2019 (Cypriot living in the UK until recently) that was derived from my father selling some of his propertly in Cyprus, I am now about to buy a flat in the UK (2022) and not sure how to declare it. It is definitely a gift and can provide proof of sale in Cyprus. Will it also be taxed? I am a UK resident (pre-settled status) but a non-citizen. Thank you,

Thanks for the reply! To follow on my question above, may I ask how would HMRC classified that £2000 as cash gift or rental income? Do we need to sign a letter to declare this is cash gift?

Hi Carlos,

You can see guidance here as to what is classed as rental receipts and should therefore be reported as such:

PIM1051 - Income chargeable: overview

Thank you.

Hello I'm a EU citizen living and working in the UK and paying tax here as well. My father wants to send me $60,000 as a gift from third party check drawn on an US bank. Will I need to pay tax on that amount and declare it? Many thanks Paula Benvegnu