Money transferred from abroad viewed as a potential "gift"

Hi all
hopefully an easy one (or maybe not  :)). My wife's (UK based) mother is selling her flat abroad in an EU country. Because it is easier for my wife to do an internet bank transfer to her own UK bank account (she has the facility in place already due to having set up a UK POA for her mother's interests) from which it would then be straightforward to pay the UK CGT due on the flat sale. However, would the mere fact that the money is coming in in this manner be viewed as an unsolicited gift (or whatever) by HMRC which would then affect my wife's own tax affairs?

with many thanks  

Comments

  • TadleyBaggie
    TadleyBaggie Posts: 5,933
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    Gifts don't attract tax.
  • eskbanker
    eskbanker Posts: 29,855
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    My wife's (UK based) mother is selling her flat abroad in an EU country. Because it is easier for my wife to do an internet bank transfer to her own UK bank account (she has the facility in place already due to having set up a UK POA for her mother's interests) from which it would then be straightforward to pay the UK CGT due on the flat sale.
    As above, there shouldn't be a taxation issue for HMRC, but if she's acting as POA for her mother then she shouldn't be transferring mum's money to an account in her own name.
  • Flugelhorn
    Flugelhorn Posts: 5,414
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    agree no tax but out the money into mum's account and pay the bill from there
  • Thanks for extremely useful replies 😀 would such monies paid into elderly mother's account affect UK pension etc.?
  • Albermarle
    Albermarle Posts: 21,105
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    UK state pension payments are not affected by the rest of your finances. Many Millionaires get the state pension and the Winter fuel payment.
    Of course the SP is taxable, but how much it gets taxed depends on your other taxable income, not from how much is in your bank account.
  • eskbanker
    eskbanker Posts: 29,855
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    Thanks for extremely useful replies 😀 would such monies paid into elderly mother's account affect UK pension etc.?
    Depends what the 'etc' signifies, but the UK state pension isn't means-tested, so the amount she receives from that wouldn't be affected by a lump sum.  If she receives pension credit or other benefits, they may be impacted.
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