Transferring money from EU to buy property in UK

xabel

Hello,

First of all, I'm sorry if this question has already been asked. I've done my research, but I'd like to ask here in case I'm missing something.

I'm a UK resident, but my parents live in a eurozone country, and have all their savings in euros. Given the difficulties of the euro at the moment, we thought it'd be sensible to transfer part of their savings to a bank account in the UK on my name. Most likely, this money would be use as a deposit to buy a property here in the UK in the future. So it'd be a sort of advance inheritance.

In short, the question is if receiving a large amount of money that would be sitting in my bank account would have any sort of implications for me, tax-wise or other? It'd be a fair amount, over 100k. Likewise, is there anything my parents need to have into account? My understanding is that it should be fine, but as I said I'm worried I might be missing something.

Thanks

atush

Well, you wil have to pay tax on the interest if on your name. and HMRC might have a Q or two (it could sendup a flag being a lrg amt wired in) so I would think about putting it into an acct in their name the next time they came to visit (or even a 3 way jnt acct).

Their are also possible IHT Q's which could arrise if one or more of the 'rents passed on in the next 7 years.

xabel

Thanks for your reply.

I understand I'll have to pay tax on the interest, that'd ok.

How likely you think it is that the HMRC pays attention to this? If they do, wouldn't it be simple to answer their questions? I mean, it just a gift from my parents...

Re IHT, I also understand, but that is something we'd need to face anyway...

atush

Well,money flying and out can put up flags, but is Much less likely to do so from a fellow EU coutnry as there is free movement og goods etc. But there are the expanded Money launderiung rules which can mean tht they ask yu source of unds (gift ) etc.

I do know that like Greece, Italy could put a restriction on the outflow of cash form the country as Greece is doing so I would act sooner rather than later if need be.

xabel

So worst case scenario is that HMRC comes with questions that should be easily answered, isn't it?
I mean, there's no way the gift is considered for the purposes of income tax, or anything else?

This being the case, would you just proceed with the transfer, or would it be worth talking to a financial adviser?

Thanks