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Where Taxpayers and Advisers Meet

Tax question - Gift of £10k given to UK daughter

ID369
Posts:3
Joined:Sun Aug 19, 2018 7:26 am
Tax question - Gift of £10k given to UK daughter

Postby ID369 » Sun Aug 19, 2018 8:16 am

My brother living in Hong Kong is suffering from late-stage cancer and intend to give HK$(around £10k) to my daughter through her HK bank account.

My daughter is a BC and working in London. What are the UK tax implications involved if such gift is transferred to her HK bank account? Will holding the money in HK, and not transfer it to UK helps to solve the situation?

Grateful for prompt comment as my brother is very impatient in his sick bed. Thanks in advance.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax question - Gift of £10k given to UK daughter

Postby pawncob » Mon Aug 20, 2018 11:59 am

There are no UK tax implications on the gift.
With a pinch of salt take what I say, but don't exceed your RDA

ID369
Posts:3
Joined:Sun Aug 19, 2018 7:26 am

Re: Tax question - Gift of £10k given to UK daughter

Postby ID369 » Mon Aug 20, 2018 3:07 pm

Thank you pawncob for the prompt response. It means a lot to me.
So my daughter can ignore the gift when filing the next UK tax return? Will there be tax concerns she brings it back to the UK after some years?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax question - Gift of £10k given to UK daughter

Postby pawncob » Mon Aug 20, 2018 4:57 pm

See previous answer.
With a pinch of salt take what I say, but don't exceed your RDA

ID369
Posts:3
Joined:Sun Aug 19, 2018 7:26 am

Re: Tax question - Gift of £10k given to UK daughter

Postby ID369 » Sat Aug 25, 2018 10:14 am

I am glad there are no tax implications on the gift part. But how about the ongoing gains and interest from this money in Hong Kong? Do I have to report it to the HMRC?

Many thanks for a reply.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax question - Gift of £10k given to UK daughter

Postby pawncob » Sun Aug 26, 2018 9:16 am

Yes.
With a pinch of salt take what I say, but don't exceed your RDA

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Tax question - Gift of £10k given to UK daughter

Postby maths » Sun Aug 26, 2018 4:23 pm

Depends upon daughter's domicile or deemed domicile status for income tax and CGT.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax question - Gift of £10k given to UK daughter

Postby pawncob » Mon Aug 27, 2018 10:30 pm

British Citizen living in London.
With a pinch of salt take what I say, but don't exceed your RDA

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Tax question - Gift of £10k given to UK daughter

Postby maths » Mon Aug 27, 2018 11:15 pm

A British citizen living in the UK may well be a non-UK domiciled individual.

Also reference is made in the post to a brother in HK.

I appreciate that statistically your assumption of UK domicile status may be correct, but it isn't certain.


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