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Cash Gifts from Family Members Abroad

KarenF
Posts: 47
Joined: Wed Aug 06, 2008 3:36 pm

Cash Gifts from Family Members Abroad

Postby KarenF » Mon Feb 20, 2012 1:24 am

Are large cash gifts from family members (parents) living abroad subject to any kind of taxation? Does it depend on where they live?

King_Maker
Posts: 6320
Joined: Wed Aug 06, 2008 3:22 pm

Re: Cash Gifts from Family Members Abroad

Postby King_Maker » Mon Feb 20, 2012 10:07 am

There should not be any UK tax implications - but could be in their tax jurisdiction.

You might want to retain all supporting paperwork, in case HMRC make any enquiries at a later date.

maths
Posts: 5057
Joined: Wed Aug 06, 2008 3:25 pm

Re: Cash Gifts from Family Members Abroad

Postby maths » Mon Feb 20, 2012 7:47 pm

Is the property gifted in the UK or not?

Peter D
Posts: 10000
Joined: Wed Aug 06, 2008 3:37 pm

Re: Cash Gifts from Family Members Abroad

Postby Peter D » Mon Feb 20, 2012 8:13 pm

"large cash gifts " I do not think property comes into it. Regards Peter

maths
Posts: 5057
Joined: Wed Aug 06, 2008 3:25 pm

Re: Cash Gifts from Family Members Abroad

Postby maths » Mon Feb 20, 2012 9:26 pm

The term "property" is being used to refer to anything which can be owned and thus extends to both real and personal property; the latter includes "cash".

KarenF
Posts: 47
Joined: Wed Aug 06, 2008 3:36 pm

Re: Cash Gifts from Family Members Abroad

Postby KarenF » Wed Feb 22, 2012 4:39 pm

Sorry about my hiatus. The money has been transferred from a foreign bank to a UK account. It is from my retired in-laws and my husband's parents.

maths
Posts: 5057
Joined: Wed Aug 06, 2008 3:25 pm

Re: Cash Gifts from Family Members Abroad

Postby maths » Wed Feb 22, 2012 7:31 pm

If the foreign account is that of the donor and the UK account that of the donee, then no UK IHT (whether non-UK IHT is a matter for their country of residence).

pqtaxation
Posts: 353
Joined: Wed Aug 06, 2008 3:38 pm

Re: Cash Gifts from Family Members Abroad

Postby pqtaxation » Wed Feb 22, 2012 7:39 pm

KarenF wrote: The money has been transferred from a foreign bank ... from my retired in-laws and my husband's parents.


Are "my retired in-laws and my husband's parents" the same 2 people.

If so, is it clear that neither is UK domiciled?

KarenF
Posts: 47
Joined: Wed Aug 06, 2008 3:36 pm

Re: Cash Gifts from Family Members Abroad

Postby KarenF » Wed Feb 22, 2012 9:09 pm

Hi PQ,

I think I got the answer above. But yes they are the same people: never been UK domiciled. I recall there is a limit (perhaps 3K if my memory serves me?) for parents within the UK, with the possibility to roll over the immediate past year if no gift was made then without incurring IHT, but for non-UK domiciled there appears not to be any such limit. That is great.

pqtaxation
Posts: 353
Joined: Wed Aug 06, 2008 3:38 pm

Re: Cash Gifts from Family Members Abroad

Postby pqtaxation » Wed Feb 22, 2012 10:46 pm

KarenF wrote:.. .. they are the same people: never been UK domiciled. I recall there is a limit .. within the UK .... but for non-UK domiciled there appears not to be any such limit.


Yes, as your parents in law have never been UK domiciled, there should be no IHT aspect in the circumstances you describe; but it was not clear from your pre-penultimate posts if your p-i-l had been UK domiciled (and maybe still are - hence the clarification) though had moved abroad for retirement.


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