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Gift from parent with funds in Isle of Man
ginger_jon
Posts: 17 Forumite
Hello, my father has substantial funds in the Isle of Man and wants to gift some of them to me - and other siblings - by way of a living inheritance. I'm in the UK. Have I understood correctly that I can receive this gift tax free, irrespective of whether he lives another 7 years or not, because there is no inheritance tax in the Isle of Man, or do I need to worry about UK inheritance tax and gift rules?
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Comments
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There is no gift tax in the UK.
IHT wouldn't be payable by you anyway1 -
Does your father live on the Isle of Man or the UK mainland. If he actually lives here then his offshore funds still attract UK IT and will be subject to the 7 year rule.1
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He doesn't live in either UK mainland or Isle of Man.Keep_pedalling said:Does your father live on the Isle of Man or the UK mainland. If he actually lives here then his offshore funds still attract UK IT and will be subject to the 7 year rule.0 -
In which case there are no UK tax issues, however some countries do have gift taxes (e.g. France) so it is possible he has a tax liability in his country of residence.ginger_jon said:
He doesn't live in either UK mainland or Isle of Man.Keep_pedalling said:Does your father live on the Isle of Man or the UK mainland. If he actually lives here then his offshore funds still attract UK IT and will be subject to the 7 year rule.0 -
OK, that's good to know. He's actually in Israel where two of my siblings live, so I'll alert them to that, though I'm pretty sure it would only apply to funds in Israel.Keep_pedalling said:
In which case there are no UK tax issues, however some countries do have gift taxes (e.g. France) so it is possible he has a tax liability in his country of residence.ginger_jon said:
He doesn't live in either UK mainland or Isle of Man.Keep_pedalling said:Does your father live on the Isle of Man or the UK mainland. If he actually lives here then his offshore funds still attract UK IT and will be subject to the 7 year rule.0 -
If dad has not already invested funds in IoM, better make sure that there are not financial sanctions on funds coming into IoM from certain areas/countries/organisations - see https://www.gov.im/media/1362741/financial-sanctions-guidance-september-2018-final.pdf1
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Thanks, all the funds came from the UK, so no sweat there.thorsoak said:If dad has not already invested funds in IoM, better make sure that there are not financial sanctions on funds coming into IoM from certain areas/countries/organisations - see https://www.gov.im/media/1362741/financial-sanctions-guidance-september-2018-final.pdf0
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