Tax on receiving money from abroad

snbond

My sister who lives in australia wants to help me in buying a house and ready to send ~£25000 to UK. I need to know whether i have to pay any tax on this amount? If so how much.

Can any help please...

Gertie_Walker

No, there is no gift tax in the UK.

snbond

Gertie_Walker wrote: »

No, there is no gift tax in the UK.

Thanks. do i have to inform my bank about the money transaction so that it won't be flagged as money laundering.

dzug1

snbond wrote: »

Thanks. do i have to inform my bank about the money transaction so that it won't be flagged as money laundering.

No - they will ask you if they are bothered. As there's an audit trail - unlikely

Murdina

Make sure you keep any documentation about this gift, particularly if you are self-employed. There is no tax on it as such but I've seen a few cases of HMRC enquiries over the years where some time before the client was given a generous gift but could no longer substantiate it and HMRC wanted to argue it was diverted takings from their business.

You should also be clear it is a gift in the remote event of any legal dispute between yourself and your sister or anyone else with an interest in the house, including any mortgage company. In some cases it could be argued the "gift" actually gave the donor an interest (I use this word in its legal sense) in the property.

So ask her to write a simple but clear letter stating it is a gift and keep that.