Hi,
I am a non-dom (though by now taxed on arising basis) and have untaxed funds offshore that I cannot remit without incurring income tax.
I am aware that I cannot lend onshore against the offshore funds, not even purely as collateral (since 2014) and definitely not as source for repayment which makes sense.
However, I am wondering about the use of gifts in the following construct:
- A non-UK close family member gifts me money into the UK without recourse or any conditions attached
- Over time, I gift money back from my offshore funds (staying offshore), again without any conditions attached
Does anybody have an idea or experience what view HMRC would take on this structure? In my view this does not constitute a loan and should not incur tax based on any remittance.
- The gifts would be completely unconditional and delayed to each other. At any time I could chose to not gift money back to my family member without any (legal/financial) consequences whatsoever
- This structure would of course have negative inheritance tax implications for both of us, which would need to be considered separately
Thanks!
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