Gift & Loan Repayment - Foreign Income? Tax?

Wasp_31

Hi there,

I am French and have been living in the UK for 9 years (I assume I am a non domiciled UK resident as my father was born in France?).

I lent money to my brother a couple of years ago. My brother lives in France and has just paid me back making a bank transfer to my French account. Is a loan repayment treated as 'foreign income' and will this amount be taxable in the UK if I decide to transfer the monies to my UK account?

Also, if my brother transfers money to my French account as a gift (over £3,000), do I have to pay taxes in the UK if I transfer that amount to my UK account?

Thank you.

CLAPTON

Wasp_31 wrote: »

Hi there,

I am French and have been living in the UK for 9 years (I assume I am a non domiciled UK resident as my father was born in France?).

I lent money to my brother a couple of years ago. My brother lives in France and has just paid me back making a bank transfer to my French account. Is a loan repayment treated as 'foreign income' and will this amount be taxable in the UK if I decide to transfer the monies to my UK account?

Also, if my brother transfers money to my French account as a gift (over £3,000), do I have to pay taxes in the UK if I transfer that amount to my UK account?

Thank you.

whether you are non domiciled has nothing to do with where your father (or indeed you) were born.
in fact I would image you most certainly are a resident of the UK.


in any event there is no tax on a repayment of a loan (or indeed a gift): if you were being paid interest then the interest would count as taxable income.

xylophone

But your brother, who a resident of France, might need to check his situation with regard to any tax on making a gift?
http://www.french-property.com/guides/france/finance-taxation/taxation/gifts-tax/