My wife and I are UK residents and she is being given a cash gift worth several thousand pounds by her family in Thailand. We plan to have the money paid or transferred direct into our joint UK current account from the Thai bank. Will this have any significant (income) tax implications for us? I'm not against paying tax as such but is there anything we could do to reasonably minimise the blow?
Thanks
Gifts aren't taxable in the UK.
They *are* likely to trigger some anti-money-laundering attention, but if everything is above board there will be no problems.
Gifts are not subject to income tax.
Gifts are subject to inheritance tax if the donor does not survive for 7 years.
Only gifts that exceed the IHT threshold, which is a tad unlikely in this case.
That's not income tax.
In the OPs example the donor would have to be UK domiciled to be subject to inheritance tax..
It's also a gift from overseas.
Really?! So if I give someone £10,000 they're not subject to CGT?
"Damot" wrote
Where would the "gain" have arisen?
In message , Troy Steadman writes
They are if made to most types of Trust and if the total of chargeable lifetime & potentially exempt transfers in the previous 7 years is greater than £285k
>In message , Damot writes
Thats right, why should they?
Gifts are not subject to CGT.
What if I give my house to someone (other than a relative) ?
The recipient doesn't pay any CGT. (Not that that helps you, and IIUC, only a gift to a spouse doesn't trigger the CGT liability immediately but they effectively then have the house as though they had bought it when you did at the price you did - i.e. the CGT liability is still waiting to bite)
Tim.
YOU may pay CGT on the disposal of the house.
The actual gift would be subject to inheritance tax.
In message , Damot writes
If it were your residence, then nothing.
If it wasnt your residence then you would be deemed to have disposed of it at market value and if that created a gain then the donor would be potentially subject to CGT, subject to their annual allowance, taper & indexation if applicable.
In message , Peter Saxton writes
But if the gift is a chargeable lifetime transfer, not a potentially exempt transfer, then hold over relief may be available.
Yes, there's lots of reliefs available.
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