Tax implications of cash gift from India

[Max41]

My retired brother being a foreign national wants to send me a large cash sum, but has asked me to check whether I will incur liabilities if he sends the whole amount to me in one transaction instead of say sending me £3000 per annum. ? Advice gratefully received.

[Max41]

This will show how much I know about IHT or Gift Tax, or anything else for that matter, but a little research on the web would suggest that it is the donor's estate that pays such taxes, so, if someone chooses to give me a million dollars, he pays the tax, NOT I.. ....never knowing what tomorrow might bring, surely I should tell my brother to send the lot now ......snags anyone ???????

[Peter D]

No tax on you in the UK and your brother will have to check on any IHT effect in India. Regards Peter

[maths]

Your research is not quite correct.

If your brother makes a gift to you and IF a UK IHT liability arose it would be a liability of yours not your brother.

However, assuming your brother is not UK domiciled and the cash is transferred from your brother's account held outside the UK then no UK IHT arises.

Whether there are any Indian tax issues should, as Peter D comments, be checked.

[Max41]

Thanks for replies ! Actually my brother was born and raised in India, and has never lived anywhere else, I can only assume that all his dough originates from there........so, I shall tell him to ensure that his tax affairs are in order, then ship the cash over here...........any snags??????