Tax on Receiving Cash gift from EEU 28 June 2020 at 11:37AM in MoneySaving mums 3 replies 75 views

jwan89

I wonder if anyone has any advice please.  My sister is a Swedish National living in Sweden, she wants to gift my daughter lump sum to my daughter, who is 18 years British National and lives in Britain starting university in September this year to help her with university tuition fees and living expenses during her university course, 
1- is there a limit to the amount of cash that is allowed to be received as a gift from a relative?
2- does my daughter needs to fill any form to be submitted to the bank/ HMRC?
3- does my daughter has to pay tax for receiving this? 

4- if my sister dies does the 7 years inheritance rule apply considering that according to the Swedish law there is no inheritance tax to be paid? 

pphillips

In the UK, there is no limit on the amount of cash you can receive and there is no tax to pay. The gift will be subject to whatever the Swedish inheritance tax rules say about lifetime transfers.

Savvy_Sue

jwan89 said:

I wonder if anyone has any advice please.  My sister is a Swedish National living in Sweden, she wants to gift my daughter lump sum to my daughter, who is 18 years British National and lives in Britain starting university in September this year to help her with university tuition fees and living expenses during her university course, 
1- is there a limit to the amount of cash that is allowed to be received as a gift from a relative?
2- does my daughter needs to fill any form to be submitted to the bank/ HMRC?

phillips is right, but ... depending on how large the gift is, it is possible that your DD's bank will ask where the money has come from, and want to check that there's no money laundering involved. How they will check this depends on the bank, and possibly on the size of the gift, ie one bank might make extra enquiries for a much smaller sum than another. 

jennifermerkle

I would check with the bank. We had a similar case and our bank just asked us on who gifted the money. Once we answered, they were happy to let us deposit it.