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Where Taxpayers and Advisers Meet

Foreign gift

riccardob
Posts: 92
Joined: Sun May 29, 2011 10:02 am

Foreign gift

Postby riccardob » Sun Nov 06, 2011 5:54 pm

Hi,

I am being donated some cash by a relative in a foreign country and I want to keep it there in a bank account.

At the moment I pay tax on a payee basis for my job. Am I right in assuming that the tax due (in addition to my salary tax) will be on the interest accrued in the bank account where my cash gift is.

a) Do I need to write to hmrc telling them about this gift?
b) Or do I just submit a tax return for the year 2011 2012 indicating the new foreign income?

Also will HMRC request proof of gift.

Thanks

mullet
Posts: 3242
Joined: Fri Nov 06, 2009 9:26 am

Re: Foreign gift

Postby mullet » Sun Nov 06, 2011 7:34 pm

At the moment I pay tax on a payee basis for my job. Am I right in assuming that the tax due (in addition to my salary tax) will be on the interest accrued in the bank account where my cash gift is.
Yes.
a) Do I need to write to hmrc telling them about this gift?
No.
b) Or do I just submit a tax return for the year 2011 2012 indicating the new foreign income?
Yes.
Also will HMRC request proof of gift.
This is remotely possible, so retain any paperwork etc. And have the money transferred to you via the banking system so that there is a trail, rather than by carrier-bags full of cash ... :?


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