Money from Parents Abroad - self assessment question

YetAnotherUsername_2

Hi,

Hoping someone will be able to advice on the below

I live and work in the UK as a freelancer. I have done self assesments in the past before but my parents have some money they would like to give me as a present. They are not UK nationals or residents. They live in Spain.
Correct me if I'm wrong but given they are abroad I think I am exempt from inheritance tax but when it comes to filling out the self assessment do I have to declare the money as a gift? So far I have received £1,000 but they want to send up to £20,000
I plan to put the money in a high interest account until we are ready to buy a house.

Any advice will be much appreciated.

Many thanks,

Dazed_and_confused

It's not available online, you have to phone the HMRC to send it out to you.

It's the same page you use to declare lottery winnings, working tax credits, family allowance, the fiver found down the back of the settee and other such rubbish people seem to want to declare on tax returns

xylophone

Hoping someone will be able to advice on the below

I live and work in the UK as a freelancer. I have done self assesments in the past before but my parents have some money they would like to give me as a present. They are not UK nationals or residents. They live in Spain.
Correct me if I'm wrong but given they are abroad I think I am exempt from inheritance tax but when it comes to filling out the self assessment do I have to declare the money as a gift? So far I have received £1,000 but they want to send up to £20,000
I plan to put the money in a high interest account until we are ready to buy a house.

There is no need to declare a gift at the point of receipt.

With regard to gifts from the point of view of UK IHT, the estate could be taxable or the recipient could be taxable in certain circumstances.
The donor should keep a record of gifts made with his will.

http://justwillsandlegalservices.co.uk/latest-news/the-7-year-rule-inheritance-tax-and-lifetime-gifts/

This is from the archive ( so figures outdated) but may be worth a look for calculations

http://webarchive.nationalarchives.gov.uk/20060213211319/inlandrevenue.gov.uk/leaflets/iht2.pdf


With regard to the Spanish system

http://www.advoco.es/home/22-latest/48-spanish-gift-tax may be worth a look.

Keep_pedalling

Dazed_and_confused wrote: »

Yes, you will need to ask the HMRC to send you the self assessment gift page and then you can declare the money on that.

This does mean you can't file online, the gift page being paper only

Really? The U.K. does not have gift tax and it is not treated as income, so why an earth should you need to declare it?

A quick search of HMRCs web site does not turn up any such form.

glider3560

Dazed_and_confused wrote: »

It's not available online, you have to phone the HMRC to send it out to you.

It's the same page you use to declare lottery winnings, working tax credits, family allowance, the fiver found down the back of the settee and other such rubbish people seem to want to declare on tax returns

Lottery winnings are tax free in the UK. Why would you need to declare it?

agrinnall

Keep_pedalling wrote: »

Really? The U.K. does not have gift tax and it is not treated as income, so why an earth should you need to declare it?

A quick search of HMRCs web site does not turn up any such form.

glider3560 wrote: »

Lottery winnings are tax free in the UK. Why would you need to declare it?

I think you'll find that D and C is posting tongue in cheek due to having answered the same question many times in the past and being fed up with new posters who are incapable of searching for those previous answers (or unwilling to try).

xylophone

I think you'll find that D and C is posting tongue in cheek due to having answered the same question many times in the past and being fed up with new posters who are incapable of searching for those previous answers (or unwilling to try).

It does appear though that the answer has just caused confusion and has not helped the OP who for one thing is a new poster who may well be unfamiliar with searching the forum (which in any case is not easy) and for another may well not be at all familiar with either the UK or Spanish taxation regime relating to gifts.

TheCyclingProgrammer

Nothing for you to declare but Spanish inheritance tax rules can be complicated so it may be in your parents interests to speak to a local accountant (possibly an abogado) to make sure they aren't leaving you liable (under Spanish law I believe it is the beneficiary of any estate who is responsible for paying IHT, NOT the estate as it is in the U.K.) for anything in the future.