Parents cash gift from abroad to buy a house in the UK

ragbuk

Hi all, I am originally from south america and I've been living in the UK for over 10 years, I have British citizenship and I am domiciled in the UK.

My parents want to help me buying my first home here and want to give me £150K and we talked about just transferring the amount from their account outside the UK to my Uk current account.

Apart from the Inheritance Tax 7 years restriction, is there any tax responsibility I have to follow? Would I be taxed on the £150K? Any advice on how to transfer it?

The money comes from my parent’s savings. Luckily they don't need it in the short term or long term as they are still working.

Thanks all for your time and answers.

dzug1

You may get a better rate going through a currency broker than direct from bank to bank


Given that your parents' estate presumably is/will be outside the UK I'm not sure how UK IHT rules will apply

ragbuk

Thanks dzug1 for your reply.

My concern is more on any tax on the £150K rather than on IHT. I wonder if next week my bank account gets that amount, would inland revenue come to my door at some point asking for a tax or documents on where the money came from?

Again, the money would be from my parents savings (long time savings..) and not for selling anything or any business venture.


Thanks again!

xylophone

Your parents may need to check on whether there is any gift tax in their country of domicile but you should not have to pay tax in the UK on the gift.

It would be advisable for your parents to write you a letter confirming the gift and its source and for you to advise your bank that you are expecting it.

agrinnall

If your parents are citizens and domiciled in your country of origin rather than the UK then UK Inheritance Tax is irrelevant, it's levied on the estate of the deceased, which will come under the laws of the country where they live, and has nothing to do with the recipient of the money.

Savvy_Sue

xylophone wrote: »

Your parents may need to check on whether there is any gift tax in their country of domicile but you should not have to pay tax in the UK on the gift.

It would be advisable for your parents to write you a letter confirming the gift and its source and for you to advise your bank that you are expecting it.

This, because otherwise you're more likely to get the bank freezing the account because they suspect money laundering.

gfplux

Savvy_Sue wrote: »

This, because otherwise you're more likely to get the bank freezing the account because they suspect money laundering.

You might need a lot more than a simple letter. Have a word with your UK bank as to what they will need to prove the funds are not being laundered. Your parents may have to engage a lawyer to certify the funds. Do not have the funds transferred before you have talked to your Bank. Once the funds are frozen I suspect the documentation required might be more onerous.
It would be very interesting to hear what your Bank says.
Do let us know.