Is gift money from family taxed?

100eyes

Hello,
I'm not sure this is the right board to ask, but I was wondering if you have to pay tax on gift money from your parents, or what the situation looking like in the UK?
My mom lives in a different country, where she is selling a flat. She wants to gift me a portion of the money, so I can put it towards my deposit to buy in the UK.
Is this money subject to tax?
I would greatly appreciate some advice this!

davidmcn

There is no UK tax payable when you receive gifts.

100eyes

Great, thank you for your help

AskAsk

only inheritance tax if she dies within 7 years of gifting you the money.  if she is a resident abroad, then whatever applies in her country.
https://www.gov.uk/inheritance-tax/gifts

she will need to write a letter to formally state that she is gifting the money to you.  your solicitor may want to check for money laundering.

100eyes

AskAsk said:

only inheritance tax if she dies within 7 years of gifting you the money.  if she is a resident abroad, then whatever applies in her country.
https://www.gov.uk/inheritance-tax/gifts

she will need to write a letter to formally state that she is gifting the money to you.  your solicitor may want to check for money laundering.

Thank you. Yes, she is a resident abroad. So you are saying that it's the law of her country that apply?

davidmcn

100eyes said:

AskAsk said:

only inheritance tax if she dies within 7 years of gifting you the money.  if she is a resident abroad, then whatever applies in her country.
https://www.gov.uk/inheritance-tax/gifts

she will need to write a letter to formally state that she is gifting the money to you.  your solicitor may want to check for money laundering.

Thank you. Yes, she is a resident abroad. So you are saying that it's the law of her country that apply?

They will be relevant, yes. But as you haven't told us which country it is, and in any event not many of us are likely to be experts in anything outside the UK, that's probably something she should investigate herself.

AskAsk

100eyes said:

AskAsk said:

only inheritance tax if she dies within 7 years of gifting you the money.  if she is a resident abroad, then whatever applies in her country.
https://www.gov.uk/inheritance-tax/gifts

she will need to write a letter to formally state that she is gifting the money to you.  your solicitor may want to check for money laundering.

Thank you. Yes, she is a resident abroad. So you are saying that it's the law of her country that apply?

if you lived in the UK and you gave away your assets before you die to someone abroad, then the inheritance tax on the estate will include those gifts if you die within the 7 year rule.  corresponding laws may exist where your mum lives.
also is she likely to move to the UK within the next 7 years?  if so, she may fall under UK tax laws.

Thrugelmir

If you intend using the money towards a deposit. Be prepared to provide documentation as to the source of the funds. 

100eyes

She is in Poland and I already know that in Poland you don't pay tax for gifting money to family?
Also she is not going to move to the UK.
Thank you for the advice!

xylophone

If no gift tax is imposed in her own jurisdiction then there is no concern on that score.

No tax will be imposed in the UK on your gift from your mother.

You should ask her to write to you confirming that she is making you an unconditional gift of £....... from the proceeds of sale of her property in.....

Comms69

There is no tax on gifts to anyone, not just family - just to be clear - in the UK