Receiving gift money from the UK and Abroad?

vincent.lee

Hello.


I'm in the fortunate position of having some well off friends (well, friends of my Mothers, but they've taken care of me since I was a baby) who are looking to gift me some money to help me buy a home.


I live in Scotland. There are two friends who want to give me money.


Friend#1 lives in England. He wants to give £20,000 to me.
Friend#2 lives in Poland. She wants to give the equivalent of £3000 - £10,000 to me.


Would these gifts be possible without paying a huge amount in tax? I don't want to do anything to anger the good old HMRC, and I'm a bit confused about gift tax exemptions domestic and abroad...


Please help?

00ec25

oh dear, yet another post asking if there is gift tax in the UK, answer: NO

NO
NO
NO
NO
NO
No
NO
and
NO

vincent.lee

00ec25 wrote: »

oh dear, yet another post asking if there is gift tax in the UK, answer: NO

NO
NO
NO
NO
NO
No
NO
and
NO

I thought money gifts were only allowed up to £3000. After that it is taxed. Is this not the case?

TadleyBaggie

vincent.lee wrote: »

I thought money gifts were only allowed up to £3000. After that it is taxed. Is this not the case?

The answer is in post #2.

[Deleted User]

vincent.lee wrote: »

I thought money gifts were only allowed up to £3000. After that it is taxed. Is this not the case?

Perhaps not a good idea to ask a question and then contest the answer?

P.S. There is no tax on gifts in the UK.

xylophone

You have no tax to pay on the gift from the UK donor when you receive it.

As far as the donor is concerned, it will be a "potentially exempt transfer".

You have no tax to pay on the gift from the Polish resident but he will need to comply with any Polish rules on gifting.

Keep_pedalling

vincent.lee wrote: »

I thought money gifts were only allowed up to £3000. After that it is taxed. Is this not the case?

The £3000 referee to the annual exemption for inheritance tax purposes. Any gifts above that rate stay in the givers estate for 7 years, so if they die within that period the estate will pay IHT on it but only if the total estate value is over their nil rate band. No tax needs to be be paid at the time of the gift and even if they die within 7years any tax is paid by the estate not you.

You do not pay any tax on the money coming from Poland, but like France I believe Poland does have a gift tax, so you mothers Polish friend needs to check if she needs to declair and pay tax on this gift.

00ec25

vincent.lee wrote: »

I thought money gifts were only allowed up to £3000. After that it is taxed. Is this not the case?

you are thinking of the rules applicable to inheritance tax and the fact that the deceased's estate may have to pay inheritance tax on a gift given by the deceased if it falls within the PET rules and the estate itself is large enough to have to pay IHT in the first place.

there is no tax on the person receiving a cash gift in the UK other than in the context of the donor being dead. Your donors are alive.