gifts from abroad

bill_stafford

My mother in law lives in Germany and wants to give my wife and I a gift of £50-60K to help with house purchase. Are we liable to pay tax on this or is it the same as gifts from within UK, i.e. provided the person giving gift survives 7 years all is well.

Cook_County

There may be German tax on the gift; there may be UK IHT implications for you - and for her if she is UK domiciled.

bill_stafford

Thanks for your information. I think I understand the situation if all parties live in the UK. The issue about German tax is well made but beyond that does anyone know whether, with my mother in law living in Germany under that tax regime, whether there is a tax liablity on us here in the UK.

dzug1

There is no tax on this gift in the UK.

Tax liability, if any, lies in Germany and is on your mother

Pyewacket338

Is their a limit to how much can be given before it is taxed? if so, would it be possible to pay the money in smaller installments?

bill_stafford

Duzg1 thanks for the info. Do you know, or any one else, whether the seven year survival rule applies to thes gifts from abroad? i.e. in the UK as long as the giver survives for seven years there is no tax liability on gifts. Just made me wonder whether because we are in the EU different rules apply!

bill_stafford

Duzg1 thanks for the info. Do you know, or any one else, whether the seven year survival rule applies to thes gifts from abroad? i.e. in the UK as long as the giver survives for seven years there is no tax liability on gifts. Just made me wonder whether because we are in the EU different rules apply! Pyewacket 338, as far as I know there is no limit on any gifts and there is no tax liability unless the giver dies within seven years and then as I understand it, if the giver ides within the seven years the gift is included in their estate for IHT pupose.

*Louise*

I wish I had a MIL like yours!!!! :j

mightymole

i nwould speak to the inland revenue who are basicly tax people for the government

dzug1

If none of her (future) estate is in the UK (and it looks like that from what you have written) then it is not liable for UK IHT. The question of a 7 year rule doesn't arise.

Whether there is gift tax and/or IHT in Germany I've no idea. It's that end that will bother you if anything does.

bill_stafford

Thanks, this is really helpful. I will get her to check her end out so to speak.