Gift of money from parents overseas

[nfshirley]

Am I liable to taxation in the UK if my Italian parents give me a gift of money from Italy for which I am going to buy a house in the UK with. I have worked in the UK for one year, and do not have residency as yet, but pay NI and standard tax on my salary here.

[Taxbar]

Dear nfshirley,

The easy answer is no. However, there maybe complications and questions asked by the UK Revenue.
I always advise Non-Domiciled Clients to effect any gifts offshore to avoid any UK Inheritance Tax arguments, as well as income tax and CGT questions.
You should ideally transfer the money to a Bank Account in a tax haven in your name , Jersey or Isle of Man as examples.

Then you can transfer the money directly to the UK.

If you open a bank account offshore, you ideally need separate capital and income accounts.

Finally, remember there maybe Italian tax issues on such a gift.

Daniel Feingold editor UK & International Tax Section.