Being gifted money from overseas

adamadzy

Hello 
I need some help . My mum lives in Australia and has done since the year 2000 . She has no assets in the uk no bank accounts no houses nothing . She has recently sold a property and has decided to gift me the money . Lets say that money she gits me is £500,000 . Do i need to declare that to the tax man ? if she dies in the next 7 years would i pay inheritance tax ? she has no desire to return to the uk . sorry to ask but i need to put my mind at rest . Thanks

MyRealNameToo

adamadzy said:

Hello 
I need some help . My mum lives in Australia and has done since the year 2000 . She has no assets in the uk no bank accounts no houses nothing . She has recently sold a property and has decided to gift me the money . Let's say that money she gits me is £500,000 . Do i need to declare that to the tax man ? if she dies in the next 7 years would i pay inheritance tax ? she has no desire to return to the uk . sorry to ask but i need to put my mind at rest . Thanks

Gifts dont have to be declared to the tax man. 

Probate law isnt straight forward, no law is internationally, but at a basic level it sounds like her estate would be dealt with under the relevant laws in Australia so you'd need to ask someone with experience of those how recent gifts are treated and whom has to pay. In the UK generally its the estate that has to pay not the gift receiver but there are exceptions if the estate cannot afford the tax and if the gifts over a certain value

Keep_pedalling

If your mother is still resident in Australia at the time of her death with no UK assets then there will be no UK taxation. Australia does not have IHT or gift tax so you gift will not be subject to any form of of taxation other than tax on any income it generates once you have received it. 

adamadzy

Thank you so very much . i was trying to explain it to hmrc on the phone today and they had no idea .but both of you are life savers .thank you