Is a transfer of 100k within the UK from a friend taxable?

govigta

Hi,

I have an aunt abroad who wants to gift me £100k--I've worked out that the bank she is with lets her only transfer 10k a month, which makes the whole process very slow

Therefore I have arranged for a friend who has accounts in the UK and the other country to transfer me 100K from his UK account to my UK account -- the arrangement will be that my auntie will give him the money at a later date.

essentially what this involves is a family friend transferring 100k to my account here -- are there any tax implications? Will my bank wonder why a complete randomer who isn't related to me is transferring this amount?

Does it count as a gift?

I'm currently unemployed

Thanks all!

Smi1er

I would be using a currency exchange, much better rates.


I have used transfermate.com before

whitewing

Sounds very odd to me.

Thrugelmir

govigta wrote: »

Will my bank wonder why a complete randomer who isn't related to me is transferring this amount?

Under money laundering regulations most certainly so.

agrinnall

To answer your question, which everyone else has ignored, there are no tax implications for such a transfer. If the person making the transfer were to die within 7 years there could be inheritance tax implications for his estate, but that wouldn't be your problem (or his given that he'd be dead, although his beneficiaries might be a bit annoyed).

Your_Hero

No immediate tax is due but it will be extremely suspicious and alarm bells will be ringing for money laundering.

bryanb

It may affect any benefits you are claiming, but of course you know that.

sinizterguy

Anti money laundering alarm bells will be ringing all over the place.

Voyager2002

sinizterguy wrote: »

Anti money laundering alarm bells will be ringing all over the place.

Agreed. So all the people involved would need to sign agreements, and there would have to be a complete paper trail showing the source of the funds and the reasons for the transfers.

Of course, you would have to be prepared for delays as the banks checked out the details before releasing the money.

As a matter of interest, does the aunt live in Cyprus?

govigta

Thanks all for the info

I asked because I realised it might be strange for a person who is not related to me to transfer such a large amount - the person in question is a family friend whom I know. He's British and works as a doctor in London. He kindly agreed to transfer the money to help me speed up the process. My aunt is in Iraq and has arranged for the funds to transfer to him back in Iraq, as he is looking to buy a house there and it would cost him a fortune to transfer the money in cash (due to commission being charged) because banks over in Iraq only allow 10k to be transferred per month, so it is a very slow process. Therefore, it is a mutually beneficial arrangement. Banking system over there is in a mess, it's essentially a cash economy. People will literally have 1-2 million in cash when buying house/land. Really risky.

I'm not claiming any benefits and have never done so. Not that it should make a difference.

ALSO - I went in to my bank and explained that I could be expecting a transfer of 100k for the above reasons and they seemed fine, they only said that I might get a call once the transfer is done.

whitewing

My concern would be if the bank decided to freeze the money for an indefinite period due to 'money laundering' making it unavailable to others.

I meant to any of you.