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Where Taxpayers and Advisers Meet

Gift from parents abroad

kiwipom
Posts:15
Joined:Wed Aug 06, 2008 3:33 pm

Postby kiwipom » Tue Feb 21, 2006 1:47 pm

My parents are New Zealand resident & domiciled & would like to gift me £20,000. I am currently living in Australia but will be going back to the UK later this year (left UK 2.5years ago).

From a New Zealand point of view there is no tax implications.
Is there any tax implications (gift duty etc) from a UK view?
Does it matter if they send it to my UK bank account while I am still in Australia or should they do it later in the year once I get back to the UK?

Andy Wood.
Posts:30
Joined:Wed Aug 06, 2008 3:32 pm

Postby Andy Wood. » Wed Feb 22, 2006 9:42 am

Kiwipom,

Can't see any problems.

Inheritance tax in the UK is donor based so the receipt of a gift is not taxable.

In a UK bank account the investment income will be taxable (whether your resident in UK or not.)

Are you non-UK domiciled? If so you may wish to consider holding offshore.

Hope this helps
Cheers

Andy Wood
Chartered Tax Adviser

awood@clbcoopers.co.uk
01204 551124

kiwipom
Posts:15
Joined:Wed Aug 06, 2008 3:33 pm

Postby kiwipom » Thu Feb 23, 2006 2:48 am

Thanks Andy,

Yes I am non-UK domiciled.
If my parents transfer the money to an offshore bank account, will I be able to remit the money into the UK in the future without any tax issues?
Should I open a capital only account & put the money in there & have the interest paid into a separate account?


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