Gift tax for cash gift from overseas

Hi Hemang Patel,
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
Thank you

Hi colin m

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
 

Hmcclain61y McClain  ,   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    .  There is no limit on how much you can give.  You do not need to provide any documents to HMRC but the banks may require something and you would need to contact them. We cannot advise you on the cheapest way to transfer the funds   . Thank you.

Dear HMRC, I have a bank account in HK for clean capital, but I found that this account generate interest, a total of 500HKD. Can we gift this amount to a friend's account to avoid it being considered a mixed fund and restore its status as clean capital?

Hi HMRC Team, I am an Indian citizen but a UK resident for tax purposes. My brother-in-law who is an Indian citizen and an Indian tax resident wants to gift me £50,000 by transferring the money from his UK bank account to my UK bank account. He holds a UK bank account from the past when he used to work in the UK. Does this transfer of money have any income tax implications for either of us?

Hi mary man,
Sorry no, as it has already been credited to the account to make it void.
Thank you. 

Dear HMRC Team I am UK and Polish citizen and UK tax resident. My parents who live in Poland and are Polish tax residents are planning to give me money and a property in Poland. Will I need to declare my parents’ gifts (money and property) to HMRC ? Kind regards

Hi anupgoel2021,

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 there, I am a resident of Scotland and my dad, who lives and pays tax in Greece wants to gift me a sum towards me buying a house here. From what I understand, I won't need to declare that and I won't need to pay tax on it unless it generates interest in the bank. 1) Is there a specific procedure for a gift transaction or can I just transfer the money to my UK account from his Greek account? 2) Also, will I need to pay any tax if/when I sell the house?

Hi,

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 Thomas Nikolaou
You are correct in your understanding that gifts of cash from overseas have no income tax implications (unless interest or dividends are generated). There is no specific procedure you have to follow when the money is transferred from the Greek account to your UK account.
Information re: Capital Gains Tax on the sale of residential property is provided at:  
Report and pay your Capital Gains Tax

Dear HMRC team, Me and my wife are Hungarian citizens holding settled status and tax payers only in the UK. My mother in law would like to gift us around Ł8600 to help our planned house buying. She can transfer the money in HUF to my wife's Wise bank account then we can exchange it to GBP and send it towards our UK bank accounts. Do we need to pay tax after this amount due to that the GBP transfer will land on our UK accounts from the Wise account not straight from Hungary? Many thanks

Dear HMRC Community Center, I hope this message finds you well. I am writing to seek guidance and clarification regarding a financial matter that involves my recent inheritance and its potential tax implications. I was born in Iran and currently hold a UK visa with refugee status valid until 2027. Approximately one year ago, I inherited properties in Iran with an estimated total value of £300,000. I want to sell these properties and invest the proceeds in property in the UK. To provide context, the inheritance tax for these properties has already been paid in Iran, and I have all the necessary legal documents confirming the inheritance. Given this situation, I have several questions: What specific documents will I need to provide when transferring the proceeds from the sale of these properties to the UK? Are there any tax obligations or liabilities in the UK that I need to be aware of when receiving this inheritance money? Due to sanctions on Iran, I must use FCA regulated money transfer agencies for this transaction. These agencies have informed me that they can provide a letter confirming the source of the funds. Will this documentation be sufficient for tax and legal purposes? I greatly appreciate your assistance in clarifying these matters. Your guidance will help me ensure that I am in compliance with all relevant tax regulations and requirements in the UK. Please let me know if there are any additional details or documents that I should be aware of or provide. Thank you for your time and support. I look forward to your response. Sincerely,

Hi,

This Forum does not deal with Inheritance Tax, hence cannot respond to your question other than referring you to Inheritance Tax Team. See link below:

Inheritance Tax: general enquiries

Thank you.

 

Hi there, I am a UK resident who is currently studying a post graduate degree. My exams are not covered by the university or Student Finance England so I will need to pay for them. I am currently working in a part-time job at the hourly rate for a 21 year old. My friend from the US wants to gift me £6000 to help pay for my exams. Would this be taxed and would I need to declare this? It would go into a PayPal account first and then transferred to my bank account and paid through stripe payment.

Hi,

Gifts of cash from overseas have no Income Tax implications, unless interest or dividends are generated.                        

Tax on savings and investments: detailed information

Thank you.

Dear HMRC, I received HKD$200,000 in my Hong Kong bank account from my parents in Hong Kong, they withdrew cash HKD$200,00 from their Hong Kong bank account and deposited to my Hong Kong bank account. Due to this money being a gift which is from my parents and not my income, do I need to declare this money in my self-assessment please? If no need to declare this money, do I need to prove the HKD$200,000 is a gift given from my parents in Hong Kong and not my income please? Thank you very much

Hello, I have a permanent residence permit and my parents recently sold a house abroad and they would like to gift me a percentage of the earnings. Would I need to pay tax for the amount received? Thank you

Hi, my mother has money saved from her business overseas. I am one of two sons, so she sends me cash gifts from time to time, usually 10-20k at a time. She now lives in the UK under a pre-settled status. She works here on a zero-hours contract just to have something to do. If she continues to send me money from her account in Brazil, now that she lives and works here on this zero-hour contract, will it create a tax liability for me? If it will, would it make a difference if she lived here but didn't work here? Thank you

Hi Hamza Fazal-Mohamood

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.