Cash gift from abroad - tax

Mohsin125

Hi,

Me and my wife are looking to buy a house and to help with deposit, my parents (who are Asia) have given a cash gift of £5k. I have the cash with me now physically but have not deposited in my bank account yet. I wanted to ensure I follow the correct steps for tax disclosure while ensuring I minimise the tax bill.

Can anyone please guide me what I need to do? I believe if i go and deposit the monies in the bank account, it might raise questions later by HMRC?

Thanks

TadleyBaggie

There is no tax on gifts. The bank may query the source due to anti-money laundering measures.

agrinnall

TadleyBaggie wrote: »

There is no tax on gifts. The bank may query the source due to anti-money laundering measures.

I'd say it's almost certain that depositing £5000 in cash will lead to some questions being asked, and with a foreign source the OP needs to make sure that a full paper trail is available at the time the money is taken to the bank.