Gift tax for cash gift from overseas

Dear HMRC, Is there any gift tax in the U.K.? If so, what constitutes a gift? If my father who resides in The Netherlands transferred me £25,000 per year to supplement my living costs (e.g. rent, food etc.), would this count as a gift? Is it taxable in the U.K.? What if my father who resides in The Netherlands gifted me a share of a property in The Netherlands worth £250,000? Would this be taxable in the U.K.? Many thanks.

Hi Agnieszka,

You will not need to report the transfer. However, as you were resident in the UK when the property was sold, you need to declare the capital gain here.

Capital Gains Tax: what you pay it on, rates and allowances

Thank you.

Hi yasminliverpool,
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
 For the transfer of the property, you would only need to declare any income this generates either from rental or from selling. 
 

Dear HMRC, I have received a substantial tax gift from my parents in Greece. This has been declared to the Greek Inland Revenue for tax purposes. I would like to transfer the money from Greece to my UK bank account. I am a UK resident and I file self-assessments. Do I need to declare the money to HMRC? Will it be taxed? Is there a limit to the money I can transfer for UK tax purposes? Thank you.

Dear HMRC, 1. I am a British citizen currently residing in India. If my sister gifts £50,000 from her savings account in India to my UK account, do I need to pay tax ? If yes, then please advise on further procedure. Kind regards, Aniket

Hi Berry12,

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.

Hello, I have been a UK resident for nearly 5 years from Colombia with my children, I am not a citizen. I am separated (but not divorced) from my husband who moved back to Colombia 3 years ago and he is going to send around £40,000 to make up for missed child maintenance payments. I have a full time job earning £26,000 and I receive child benefit, do I have to declare this money or pay any taxes? Many thanks

Hi I am a UK resident under ILR, my brothers in the USA sent me £12,000 as a gift, and my parents living abroad gave me £10,000 cash as a gift as well, do I have to pay tax?

Hello, I’m a British citizen and my parents want to gift me some money. They want to transfer money to my current account in the UK, from the business (not current account) in the UAE. 1) Would I need to pay any tax because this gift is coming from a business bank account? 2) is there a limit on how much they can transfer?

Hi Aniket,

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! I am a UK resident (student now, going on grad visa) and my family are residents in Montenegro. We are planning to purchase a property in England in my name. The property would cost around £700k. At first we were thinking to transfer funds from my father's Montenegrin account to a solicitor as a gift, and put the property in my name, as the owner. Would there be any taxes during or post-purchase in this case? Does the 7-year rule apply in this case? Thank you!!

Hi, Hope you are doing well. Gifts and Donations are tax free everywhere. No more worries about this. Have a great day!

Hi Diana,
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 noory015,
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 Ololol,

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 marina.m.m.,

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 Inheritance Tax: general enquiries.  
You may also want to review the guidance at How Inheritance Tax works: thresholds, rules and allowances. 

Thank you.

Hello, I am italian, I live and work in the U.K. I am receiving some money (€75k)from Italy as a gift from my parents to buy a house. If I transfer this money in my current U.K. bank account or saving account I will have to pay taxes because I will get interests. Are the taxes going to be on the interests only or on the lump sum (75k+interest)? Thank you!!

Hi, I am a Pakistani resident, living in the UK since 9 years on student visa and now have applied for tier 2 visa. One of my friend is giving me a gift money, a sum of £100,000 towards a purchase of an apartment in London. Is that possible to do so, without any legal complications? Do I need to pay any tax on it or declare the amount? Thank you

My friend wants to give me a loan of £100000 from Dubai to help me to buy a house in UK. He will transfer this amount to me in my uk bank account . Will there be any tax on this amount and if I have to report this to HMRC ?

Hello, My father passed away last year in Mexico. He was a Mexican citizen and not a UK citizen. I am a UK citizen and taxpayer and have a UK bank account. He has left us a property through his inheritance, which we are due to sell and receive the cash from the proceeds. Inheritance tax and tax from the sale of the property is being paid in Mexico, and the resultant money from the sale will be split between myself and my brother. We plan to do a cash gift transfer to our UK bank, roughly £230K. Will I have to pay any income tax or tax to receive that money into my UK account? Thank you.