Declaration of large cash gift

[NonDom41]

I would appreciate assurance over the following situation: an Austrian father, resident in the UK with indefinite leave to remain, gives his son (also Austrian and with leave to remain in the UK) a large sum of cash. This takes place via bank transfer from one account to the other, both located outside the UK.

My question is simply this: does this gift need to be declared to HMRC at the point this transfer occurs or is this only necessary should the father pass before the 7 year window for IHT liability?

[bd6759]

Domicile, length of UK residence, and amount are relevant factors.

[AGoodman]

There is no need to declare any gifts to individuals when they are made.

If the donor was Long Term Resident (i.e. had been tax resident here for 10 out of the last 20 years) then the gift will be a PET and would be brought into account should the donor die within 7 years of making it.

If not LTR, then the gift was excluded property and outside of UK IHT entirely.

[NonDom41]

Thank you very much.