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Cash gift from non UK resident – Q&A

Author

Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.

Cash gift from non UK resident – Q&A

Q. I have received a Cash gift from a non UK resident. How am I taxed?

A. As with nearly all tax questions, it ultimately depends on the facts.

Your tax position

All things being equal, it is unlikely that you will have any tax implications. The UK will view the gift as a transfer of capital and, for the time being any way, the UK does not tax receipts of capital.

For instance, the receipt is not subject to income tax or capital gains tax in your hands.

The only exception might be where the donor’s estate was within the scope of UK IHT and he or she failed to survive the gift by 7 years. If this gift became chargeable to IHT then a liability might fall on you, the transferee.

In respect of the donor, from a UK perspective, a gift of cash (or any other asset other than certain UK assets, for example, UK real estate) will NOT create a CGT liability.

Donor’s tax position

This assumes he or she is non-UK domiciled as well as non-UK resident.

The donor might have to consider UK IHT if the cash he has gifted is within a UK bank account. However, this will be relevant if he survives the gift by 7 years in any event.

If the cash is in a UK bank account then the donor would also have the benefit of the nil rate band for IHT purposes in any event.

However, the UK tax system is complex, and we would recommend that you obtain formal and specific tax advice. Further, one should also consider any tax implications in the country that the donor is resident.

 

If you have any queries about a cash gift from a non UK resident or regarding tax matters at all, then please do not hesitate to get in touch.

 

 

 

Cash gift from a non UK resident was last updated on 5 August 2019

9 Comments:

  • George Brown / Reply

    If a nonUK-resident and nonUK-domiciled person wires a gift from his nonUK bank account to a UK-resident and UK-domiciled donee’s UK bank account, will the gift be considered to take place in the UK and hence be potentially includable in the donor’s estate for U.K. inheritance tax purposes under the 7-year clawback rules?

  • A non UK friend has wired me gifts multiple times in the last 2 years, different amounts.
    Do I have to pay tax on these gifts because it is more than once?

    Thank you

  • Mark Thomas / Reply

    my brother in law who lives in Munich and wants to give us £100,000 from a sale of his house.
    we live in the UK , would such a gift be taxable in accordance with uk tax laws.

  • Bruno Leite / Reply

    I’ve been gifted £9000 from my mother. My mother lives in Portugal and she’s portuguese i reside in the UK. Do I have to pay tax from that money which I used as a deposit to buy a house.
    Kind regards

  • I am India based. My daughter is a UK citizen. I want to transfer money on monthly basis to her. Will be taxable in UK and is there a limit.

  • Cheryl Waddoups / Reply

    I have a US relative who wants to give my daughter $100,000+ to help her buy a house in the UK. My daughter is uk citizen resident in UK and not a USA citizen. Her great aunt is a USA citizen resident in USA and not a UK citizen. Are there any tax implications for my daughter? thanks for you help.

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