capital gains tax on cash gifts ??

[dvldvl2222]

do you pay any capital gains on cash gifts ?? (non related person, i.e. friend)

is there a limit on this ?


do the rules change if it is an overseas person gifting you the money. i.e. an asian friend sends over $300,000 ... do i need to pay capital gains on this >?

[CDavey9501@aol.com]

No UK CGT on cash gifts.

[dvldvl2222]

even on receiving cash from overseas/foreginers ?

so if you got $2 million in cash from japan, the taxman cant take any of it >???

[CDavey9501@aol.com]

no UK CGT on any cash amount up to infinity (and beyond)!

There may be a few people including the tax man interested in the source of the money though.

[hashman]

Foreign currency is a chargeable asset for CGT purposes (subject to an exception which does not apply here) so if you realise a gain on converting the funds into sterling there may be CGT to pay.

Ditto if you make a loss you will have an allowable loss for CGT purposes.

[CDavey9501@aol.com]

I don't think that is really what the querist is asking.

[hashman]

Maybe not but he/she needs to be aware that if there is a gap between acquiring the gift in foreign currency and converting it into sterling there could be a tax charge. Often they (and clients in general) don't know what they should be asking I find and so you have to think outside the box.

[dvldvl2222]

i dont understand what you mean by gap betwwen converting it into sterling.

i was paid by bank wire. so you mean, i pay capital gains on the beneficial exchange rate ? something like £300 ?>?

[dvldvl2222]

the bank automatically changes the money from sender currency to sterling..

so if $ was sent, it is changed to £ automatically without ky consent.

do i need to pay capital gains on the whole dollars $ sent ? (should i have got it sent in british £? )

or do i only pay capital gains, if the exchange rate changes and i realise a small gain on exchanging the $ to £. i.e. $300,000 was sent, but after exchanging it amounts to $300,500. my capital gain is $500 ??

[Instinctive]

If the donor wired the money, then the conversion question doesn't arise. However, if the donor made the gift abroad in a foreign currency on date X, and this is not brought to the UK until date Y, there is a conversion gain or loss between these two dates, I presume.

Ramnik