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Posted Thu, 01 Jun 2023 22:21:56 GMT by Steve D
Hello I’m coming from Hong Kong by BNO visa since 2021 with my family (wife and children) The main income for my family comes from my work, I am working as a self-employed courier driver, I drive my car to do my jobs 6 days a week. As my home is not near the city, I usually drive my car as main transport with my family and work. Unfortunately my car always has problems, it was broken down again. I need a car for work and domestic use for my family, I can’t drive for my work when the car is in the garage. My car is the main tool for me to earn my income, I can’t earn the income for my family without my car. Therefore, my father who lives in Hong Kong suggested that I should buy another car for my family in the UK, as a backup car for work, if my car has problems again in the future, I can drive another car to work and for my family. I asked the motor company, and the salesperson replied that we are living in the UK for less than 3 years, so we can’t go buy a car with finance. As we don’t have enough funds to buy an extra car at that moment, we are struggling how to pay, my wife has an overseas credit card which she paid for some expenses, she paid for the car with her overseas credit card. Now, My father from Hong Kong knows our situation, he wants to help us to lighten the family's financial burden, he helped to pay my wife’s Hong Kong credit card statement from his Hong Kong bank account (for transactions of buying the car and some expenses in the UK should be about £10,000). Once our financial status is better, then return the money to him partially as much as we can. Therefore, I would like to know something as below: 1. Does it involve the tax for me or my wife? 2. Should I or my wife need to declare a self-assessment return for our situation? I would appreciate your help. Thanks so much. Best Regards, Steve D
Posted Mon, 05 Jun 2023 16:40:30 GMT by HMRC Admin 10
Please note that gifts (or interest-free loans) of money from relatives overseas have no UK income tax implications.
Posted Tue, 06 Jun 2023 10:45:40 GMT by Steve D
Dear Admin, Good afternoon and hope you are well. Firstly, thank you for your reply. 1. If gifts or interest free loan of money from relatives overseas, are there any limits (e.g. times of transfer, amount of money, number of sender) ? 2. I would like to know should my wife or me need to declare this to HMRC? Sometimes, my wife does not have a UK credit card, when she will use her overseas credit card to pay for something in the UK and her overseas credit card statement is paid by my UK income. 1. Are there any limits for using overseas credit cards in the UK? 2.Are these transactions subject to UK Tax? and 3. Should she or I need to declare it to HMRC as well? Thank You for your help and hope you have a good day. Best Regards, Steve D
Posted Wed, 07 Jun 2023 14:14:00 GMT by HMRC Admin 17

There is no tax to pay on any gifts that you receive.

However, paying for goods with a credit card could be classed as remittance if you are claiming the remittance basis.

See guidance at :

Paying tax on the remittance basis (Self Assessment helpsheet HS264)    .

Thank you.
Posted Wed, 07 Jun 2023 14:48:05 GMT by Steve D
Dear Admin, Thanks for your reply. I'd like to know if my wife's overseas credit card statement is paid by my father's money gifts / my UK income, 1. Should she need to declare to HMRC if she doesn't claim the remittance basis. ???   2. About the remittance basis, does it automatically apply or does she need to fill in the form by herself or by tax advisor?? 3. Will these transactions from her overseas credit card count as Personal Allowance??? (She is a housewife, she worked  part time job for 2 months and the income report to HMRC by PAYE).   We are really sorry we don't know about the remittance basis... thanks for understanding ... Thank You 

Name removed Admin
Posted Fri, 09 Jun 2023 16:05:31 GMT by HMRC Admin 10
The remittance basis doesnt automatically apply and you would need to complete a tax return and the SA109 if you meet the requirement.
Please refer to the guidance link previously given on what is classed as remittance.

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