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Where Taxpayers and Advisers Meet

Overseas gift from my father

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

Overseas gift from my father

Postby Maria2018 » Mon Sep 23, 2019 4:23 pm

I'm a non dom resident in the UK and my father who is a non UK resident asked me to help him rent his property in his country through a power of attorney. This power of attorney gives me the right to enter into contract, collect rent and open an account in my name solely to collect and deposit the rent throughout the duration of the lease. The deposited amount is to be transfered back to him when requested.
My question is, what tax implications would there be if he decides at the end of the lease to gift me some or all of this money?
If I decide to bring this gifted money in to the UK should I transfer it back to my father and then he transfers it into a new personal account in my name or could I take ownership of the rent account and bring money from there?
Thank You in advance
Maria

AGoodman
Posts: 881
Joined: Fri May 16, 2014 3:47 pm

Re: Overseas gift from my father

Postby AGoodman » Tue Sep 24, 2019 3:40 pm

No problem on a gift other than it would be a potentially exempt transfer - potentially subject to IHT if he died within 7 years.

You should be cautious of arrangements where you are holding others' income in your name. You could have to explain to HMRC where it has come from. If your father isn't declared as beneficial owner then any interest on the account will be reported to HMRC as yours.

You should do something to mark the gift - either by transferring it or a letter from your father.

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

Re: Overseas gift from my father

Postby Maria2018 » Thu Sep 26, 2019 10:58 am

Thank you AGoodman for your valuable advice.

Regards

Maria


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