Gift from rich uncle abroad.

Bequia

Hello everyone, I have had an offer of a lifetime but I am concerned about any tax implications. My uncle who lives abroad has offered to gift me the money to purchase a house for myself and a flat for my son. I however, am concerned about what tax implications that would hold for me.

He now resides in the West Indies and I am British born and resident. He was resident here back in the late 60's but moved to Canada until he returned to the West Indies, so has no financial ties with the UK.

I wouldn't like to accept the offer only for the taxman to take a huge chunk, with the possibility of not having enough left to purchase even a flat.

Any help that you all can offer would be really appreciated.

Many thanks.

xylophone

There is no tax on receipt of monetary gifts in the UK - there can be IHT implications for the estate of a person who makes gifts. Your uncle would need to check on any gift tax in his country of residence and on any IHT implications there might be for his estate.

You would be wise to inform your own bank that you are expecting a large sum from abroad and to provide any information that might be required.

Bequia

Thank you very much Xylophone for your speedy reply.

My uncle always says that money brings more worry not less, I am beginning to see what he means by that. He did say everything would be alright but I couldn't believe things could be that simple.

I will contact my bank ASAP to put things in place first then go from there. Thank you again.

McKneff

I agree that there are no tax implications for you.

But to pick up on your post, would you really refuse a monetary gift if there was say 20% tax to pay on it.

Surely 80% of say £200K is better than nothing.

paddlepanda

Would there be tax implications if my mother were to give me £50k (both residing in this country). My mother is retired on a small pension. Also, I owe about £36k (on DMP) to creditors - would their be a tax implication if she were to pay off these debts? Thanks

xylophone

Re gifts and IHT http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

Is your mother likely to need care? Will giving away money mean that she would be looking for means tested benefits?
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS40_deprivation_of_assets_in_the_means_test_for_care_home_provision_fcs.pdf?dtrk=true
http://www.ageuk.org.uk/Global/Age-Cymru/Factsheets%20and%20information%20guides/FS53Capital_income_and_means_tested_benefits_fcs.pdf.pdf

grey_gym_sock

McKneff wrote: »

But to pick up on your post, would you really refuse a monetary gift if there was say 20% tax to pay on it.

Surely 80% of say £200K is better than nothing.

of course ... but you wouldn't want to buy a £200K house with the money and then find out that you owed £40k tax.

MarcoM

xylophone wrote: »

There is no tax on receipt of monetary gifts in the UK - there can be IHT implications for the estate of a person who makes gifts. Your uncle would need to check on any gift tax in his country of residence and on any IHT implications there might be for his estate.

You would be wise to inform your own bank that you are expecting a large sum from abroad and to provide any information that might be required.

How does one go about informing a bank of such a transfer?

Does the average bank call centre script include details of ML regs and large transfers?

My bank for example only has a machine in the branch and when I try to speak to a CS advisor it seems there isn't one around.

luckystrike23

wish i had an uncle like that! mine only seem to demand beer money and spare change when I visit them.

fluffymuffy

Bequia wrote: »

My uncle always says that money brings more worry not less

It's only rich people who say that.