Gifts from Parents abroad

[manishmalik]

Hello,

I am an indian national, and hold a permanent residency in UK. I am planning to buy a house in the UK and therefore am saving money for my deposit. My parents in India wish to give me a gift of around £15000. Kindly let me know if this gift is subject to tax in the UK?

[Lee Young]

No it is not, assuming your parents have no fiscal connection with the UK or any part of it.

[manishmalik]

Thank you Lee. In response to this I have another small question. Can I take this gift as cash? If I deposit cash worth £15000 in my bank account, will I be subject to tax? How do I declare it that this is a gift from my parents abroad? I am quite new to UK taxation rules, so kindly let me know?

[Lee Young]

You can take it as cash and the £15,000 you receive does not need to be reported by you or your parents at all to the UK tax authorities.

Of course the interest generated on the deposit will be subject to income tax.

[manishmalik]

Thankyou Lee. Your responses were very helpful.