A cash gift from overseas that is already in Sterling currency i.e not in foreign currency

[HarryHowls]

Hello all,

I am a non UK resident living overseas. I am looking to gift my son £150,000 from my Sterling account in Amsterdam (all taxes paid). My son is a UK resident paying taxes there.

Now I understand that a cash gift from a non-resident/domicile will not usually attract IHT if I died in the 7 year period, but what if that cash gift is already in 'Sterling' before being transferred to the UK? Will that make a difference? Will it be considered UK domestic money because it is in Sterling? (for example where the bank holds the account I don't know)

I could convert it to Dollars or Euros first then send (and have him convert it back into pounds) but what a waste of money with the fallen exchange rates!

[maths]

The fact that it is in £ is irrelevant to ascertaining IHT exposure. If you are non-UK domiciled then a gift from your Dutch account is outside any IHT charge.

If you are UK domiciled (even if non-resident) then the gift will be a PET subject to the 7 year rule.