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Where Taxpayers and Advisers Meet

Inheritance tax for overseas

NBNB
Posts: 3
Joined: Thu Nov 07, 2019 10:19 am

Inheritance tax for overseas

Postby NBNB » Thu Nov 07, 2019 10:30 am

Hi.
I am permanent resident in UK and employed full time. Been here continously since mid-2014 . I am an Indian citizen. My parents wish to gift me/bank transfer around £5k .
1. Will there be a tax implication for me here in UK for the same ?
2. Do I need to declare to the bank (or HMRC ?) or fill up forms ?
3. Is there a limit of how much they can transfer to me in the future ?

Thank you

pawncob
Posts: 4390
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Inheritance tax for overseas

Postby pawncob » Thu Nov 07, 2019 4:47 pm

Assuming they are not UK resident, there are no limits to the amount they can transfer to you and no tax implications in the UK. (That may not be the case in India)
With a pinch of salt take what I say, but don't exceed your RDA

NBNB
Posts: 3
Joined: Thu Nov 07, 2019 10:19 am

Re: Inheritance tax for overseas

Postby NBNB » Sat Nov 09, 2019 10:45 am

thanks for the response.

Yes, they are indian citizens as well. And there is a limit in how many transfers they can do in a financial year ? Can they transfer upto 50k£ in a financial year ?

Also, will there be any tax/forms to fill if I earn interest on the gift money ?

pawncob
Posts: 4390
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Inheritance tax for overseas

Postby pawncob » Sat Nov 09, 2019 3:41 pm

Any interest earned will have to be included on your next tax return.
With a pinch of salt take what I say, but don't exceed your RDA

NBNB
Posts: 3
Joined: Thu Nov 07, 2019 10:19 am

Re: Inheritance tax for overseas

Postby NBNB » Tue Nov 12, 2019 9:44 am

Thank you. So I then need to complete a self assesment form later on ? Currently I am employed full time (not self-employed)

AGoodman
Posts: 888
Joined: Fri May 16, 2014 3:47 pm

Re: Inheritance tax for overseas

Postby AGoodman » Wed Nov 13, 2019 5:20 pm

Probably not. The interest on £5k is unlikely to exceed your tax free savings allowance (which everybody has of at least £500 save for those with income > £150k).


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