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Where Taxpayers and Advisers Meet

Gift from overseas

Maria2018
Posts:5
Joined:Thu Sep 27, 2018 1:02 pm
Gift from overseas

Postby Maria2018 » Thu Sep 27, 2018 1:32 pm

I’ve been living in the UK for about two years and I’m a non-Dom but tax resident.
My father, non-Dom, non resident, wants to share his wealth between his children as a gift and I would receive a substantial amount of money.
If he made a transfer from his off shore company account into my off shore private account and I then transferred the money to my UK account, would there be any tax implications?
Would there need to be any documentation for the gift?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Gift from overseas

Postby AGoodman » Mon Oct 01, 2018 2:41 pm

A outright gift of foreign monies from a non-dom donor should not attract any UK tax. The complicating factor is the company as it could look like a dividend. If your father is actually receiving the dividend and gifting it to you, it would look much better if he first paid himself then gifted it on.

Maria2018
Posts:5
Joined:Thu Sep 27, 2018 1:02 pm

Re: Gift from overseas

Postby Maria2018 » Tue Oct 02, 2018 9:18 am

Thank you AGoodman for your reply.
As I understand no dividend applies as my farther is the sole owner of a small limited liability company, with no employees and no partners, and the intended gift is from a draw he makes from his company capital.
Does this make it less complicated?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Gift from overseas

Postby AGoodman » Tue Oct 02, 2018 2:10 pm

You just need to make it clear from the paperwork that it is a gift from your father and not a transfer from the company.

Maria2018
Posts:5
Joined:Thu Sep 27, 2018 1:02 pm

Re: Gift from overseas

Postby Maria2018 » Tue Oct 02, 2018 2:31 pm

Thank you. I appreciate your advice.


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