Cash gift from overseas parents

GiftDeed

Hi all,

In last couple of years whenever we went over to my parents house (they live Turkey) they generously gave cash gifts. The total of these gifts are around $20000 and €4000. The money came out from their bank account in Turkey and it's 100% legit (it's from their savings and can be proved if necessary).

Initially we were going to use it to build an extension (this was their idea as they wanted more space for their grandson to run around in the house )

Anyway, we decided to buy a bigger house instead of spending the money for the extension. As of now, money is still in $ and € sitting at home in a very secret corner .

Now that we sold our house (STC) and our offer for the other house is accepted I want to deposit this money to my bank account. I was wondering if there is any special process for that. Can I just go the bank and hand them over to the cashier? Will they ask where the money came from? Do I need some kind of letter from my parents? Once the money in the account, do I need to declare it in my self assessment form

Thanks for your help.

B

xylophone

Once the money in the account, do I need to declare it in my self assessment form

This is a gift so no. Whether your parents need to declare the making of such gifts to the Turkish tax authorities I don't know - I do know that some countries do impose a gift tax.

As to crediting the money to your UK bank account, it would be as well to have a letter from your parents evidencing the gift in case of a query by your bank.

antrobus

xylophone wrote: »

...As to crediting the money to your UK bank account, it would be as well to have a letter from your parents evidencing the gift in case of a query by your bank.

Customer walks into bank. Plonks $20,000 and €4,000 on the counter and asks 'can I pay this lot into my current account please?'

OP should certainly proceed on the basis that questions will be asked.:)

CKhalvashi

antrobus wrote: »

Customer walks into bank. Plonks $20,000 and €4,000 on the counter and asks 'can I pay this lot into my current account please?'

OP should certainly proceed on the basis that questions will be asked.:)

And in many cases, they will be.

We've been depositing large amounts of Sterling, Euros and to a smaller extent, Russian Rubles and US Dollars into business accounts on a monthly basis for several years now, and we've been asked where it's come from.

We show a signed accounting sheet (signed by staff as we receive the cash), and this has always been accepted on face value, so OP should have no problem with providing a letter from parents, which should also convince tax authorities should they come under scrutiny.

CK

GiftDeed

Thank you very much for all your replies. I think I'll ask my dad to send me a signed letter just in case.


Does anyone have any example letter for this?


Thanks
B

xylophone

Address of sender as usual for a letter. Date

Dear John,

Your mother and I would like to confirm that the following cash amounts were absolute gifts to you and Mary from our own financial resources (savings/current account(s) with Anybank Ltd).


Date and Amounts

Signed Tom Smith Jane Smith.

Savvy_Sue

Is there a limit on the amount of currency which can be brought into the UK at any one time without being declared to customs? If so, did you bring it in in smaller amounts that whatever the limit is?

Just have a vague memory of seeing something at customs after my last flight.

xylophone

Just have a vague memory of seeing something at customs after my last flight.

https://www.gov.uk/bringing-cash-into-uk

GiftDeed

Thanks for this. I shall get this done and get it signed.

xylophone wrote: »

Address of sender as usual for a letter. Date

Dear John,

Your mother and I would like to confirm that the following cash amounts were absolute gifts to you and Mary from our own financial resources (savings/current account(s) with Anybank Ltd).


Date and Amounts

Signed Tom Smith Jane Smith.

GiftDeed

I am aware of this but we brought this in smaller amounts during 2-3 years. Never needed to declare it at the airport.

But now that you mentioned it, do I need to declare it now as it's more then €10000, or is it only when you enter the country?


Thanks

Savvy_Sue wrote: »

Is there a limit on the amount of currency which can be brought into the UK at any one time without being declared to customs? If so, did you bring it in in smaller amounts that whatever the limit is?

Just have a vague memory of seeing something at customs after my last flight.

dzug1

You don't need to declare it at all - just explain to the bank where it came from when you change it.

Main worry is that for cash you are going to get a poor exchange rate