Gift Cash from Uncle in Pakistan

[mansour370]

Hi

I am in serious need of advice and very confused about this subject
Hope someone will be able to clarify what should be done and how?

My parents and I live in UK, we are French national and moved in UK back in 2002.
My uncle back in Pakistan want to send me a large sum of cash around £400,000 so that I can purchase a property here in UK.

My concern here is that, is my uncle allowed to send me a cash gift here in UK ?
If yes, do I have to pay any sort of tax or capital gain when I receive the money ?
Do I have to let anyone know about this here in UK ?
When buying a property, I might need to prove the source of the money, how should I do that ? Do I need a written letter from my uncle or anything else ?

I would sincerely appreciate if someone could shed some light on me on this subject

Thanks again
Maan

[towat]

I am not aware of any specific tax problems with receiving large gifts.

Your main concern will be, and I think this impacts on your query, that any large sum of money hitting your bank account, especially from overseas will trigger the bank's anti-money laundering procedures, they will report it to the relevant authorities and it will be them that you have to satisfy as to the source and legality of the money.

Any institution or professional such as banks, solicitors and accountants are bound by law to report any suspicious activity involving the movement of money from any source.

[Tax Champion]

A gift is just that, a gift - it is not income or capital gains in your hands, so not taxable. However for such an amount it would definitely be recommended that you get, and keep, as much documentary evidence of the gift as possible.

If the money is invested for a while, the interest arising will be income, and therefore taxable.