Provision of Credit Cards to UK Resident by Non-Res family

[CharleyVN]

Hello,

I have a question relating to the provision of foreign credit cards to UK residents by non-UK resident family members. The UK residents have their lifestyle funded by their parents and receive cash as well as a credit card which they have free reign to spend what they please. The cash is solely from the non-UK resident's personal wealth, paid directly into bank accounts held by the UK residents.

The credit card is paid off by the non-UK resident family member. Again, the sole source of the payments are from the non-UK resident's personal wealth.

UK residents do not have any non-UK income or gains nor have they had such at any point during their lives, but they do have UK income on which they are taxed accordingly. Some of the cash gifts were used in order to fund private residence property purchases.

I am happy that the straight cash gifts provided by the non-UK residents do not appear to attract a tax charge within the UK, however I just want to check whether the added steps of using a foreign credit card which is then repaid by non-UK resident family members for the spending in the UK by UK residents does not attract a UK tax charge that I have overlooked?

I need to consult with my clients on domicile, however I think it likely they are now deemed domicile in the UK under the new rules.

Thank you in advance for any advice or pointing out anything I may have overlooked.

[AGoodman]

No, I can't see anything wrong with that. It only becomes a problem when the UK resident are using their own untaxed offshore income/gains to settle a credit card used in the UK.

[CharleyVN]

No, I can't see anything wrong with that. It only becomes a problem when the UK resident are using their own untaxed offshore income/gains to settle a credit card used in the UK.

Thank you, that was my line of thinking. It's just one of those strange things that I had a feeling might have a random, seldom-used rule behind it that makes some part of it taxable in the UK.