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Where Taxpayers and Advisers Meet

IHT and exempt transfer

kevincab
Posts:19
Joined:Wed Jul 15, 2015 10:53 am
IHT and exempt transfer

Postby kevincab » Mon Jul 27, 2020 2:58 am

Hi all, I have some tax questions and need some advice, many thanks.

My sister, who is not the UK resident, wants wants to send some money from overseas to me in the UK. Based on my knowledge, only transfer of money shouldn't have any tax implications. However, is there any problem if I send this money back to her in the future? if my sister was UK tax resident in the future, then if I transferred money to her it will be a "potentially exempt transfer" and there might be IHT liability if I pass away within 7 years of the transfer. Is it still the same if my sister remains as non-UK tax resident in the future?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: IHT and exempt transfer

Postby pawncob » Mon Jul 27, 2020 12:09 pm

The gift depends on your residence status, not hers.
With a pinch of salt take what I say, but don't exceed your RDA


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