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Post Info TOPIC: Income tax on money received from parents from abroad
gigi12


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Income tax on money received from parents from abroad
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Hi everyone,

 

I would like to ask you if i need to pay income tax when my father will transfer 50.000 euros as a gift from his bank in Italy to my Uk bank account. Or if there is any other tax I need to pay.

Many thanks.



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Peaman


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No, there shouldn't be any tax payable.

If the money is from your fathers savings (i.e. it is money that he has already paid tax on), then HMRC do not need to know about it.

There is an HMRC helpline that deals with overseas matters that can confirm if the above is correct. Unlike many HMRC depts they were very helplful on the few occasions that I called them. However, I can't find the number, hopefully it has not been closed due to HMRC cutbacks.

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Richard 
RobH


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There are limits on how much a parent can give to their child tax free in the UK, it seems to have been stuck at £3k a year for as long as I can remember. More is allowed if it is a wedding present. However it will normally be treated as a potentially exempt transfer and so long as the donor lives for the next seven years it will escape inheritance tax. The reasoning is so people cannot escape inheritance tax by gifting everything they own just before they die. I'm not sure how this works if your father is an Italian citizen though.

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Rob
www.accounts-solutions.com
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