CGT - Mother to daughter payment (from outside the EU)
Discussion
My other half is from China and her parents are wishing to give her about £10,000.
I'm guessing as the money originates from outside the EU/UK then it is not subject to capital gain tax?
Or would I be wrong, due to the fact the my other half lives with me in the UK (permanent residence) and it will be going in to her UK bank account?
I'm guessing as the money originates from outside the EU/UK then it is not subject to capital gain tax?
Or would I be wrong, due to the fact the my other half lives with me in the UK (permanent residence) and it will be going in to her UK bank account?
Think I'm confusing myself over the numerous taxes we are subject to.
Having been trying to decipher the government websites I was thinking there was something like a £3,000 limit on what a family member could give to another before CGT applied?
But maybe this falls under the inheritance tax instead?
Having been trying to decipher the government websites I was thinking there was something like a £3,000 limit on what a family member could give to another before CGT applied?
But maybe this falls under the inheritance tax instead?
Edited by AJI on Wednesday 12th June 12:19
AJI said:
Think I'm confusing myself over the numerous taxes we are subject to.
Having been trying to decipher the government websites I was thinking there was something like a £3,000 limit on what a family member could give to another before CGT applied?
But maybe this falls under the inheritance tax instead?
Yep - that's to do with IHT, not CGT.Having been trying to decipher the government websites I was thinking there was something like a £3,000 limit on what a family member could give to another before CGT applied?
But maybe this falls under the inheritance tax instead?
Edited by AJI on Wednesday 12th June 12:19
Reading on more websites there does seem to be a £3000 limit (per year)....but like you say it falls under IHT.
http://www.thisismoney.co.uk/money/experts/article...
So if the other half's parents (whom are outside the EU/UK) wish to give £10,000 via bank transfer, then would this have any tax taken off it by the UK government during the transfer?
Or would the other half have to declare it and pay tax on it at a later date?
http://www.thisismoney.co.uk/money/experts/article...
So if the other half's parents (whom are outside the EU/UK) wish to give £10,000 via bank transfer, then would this have any tax taken off it by the UK government during the transfer?
Or would the other half have to declare it and pay tax on it at a later date?
You can give what you like to whom you like. Even if the gift was £1 million there would be no tax - unless the person giving the gift dies within 7 years of making the gift.
The £3,000 is an amount which ALWAYS is exempt whether the giver dies or not.
There are a few other types of gifts which are also permanently excluded.
The £3,000 is an amount which ALWAYS is exempt whether the giver dies or not.
There are a few other types of gifts which are also permanently excluded.
Eric Mc said:
You can give what you like to whom you like. Even if the gift was £1 million there would be no tax - unless the person giving the gift dies within 7 years of making the gift.
The £3,000 is an amount which ALWAYS is exempt whether the giver dies or not.
There are a few other types of gifts which are also permanently excluded.
So would my other half have to inform the UK government if one of her parents dies within 7 years whilst living in China?The £3,000 is an amount which ALWAYS is exempt whether the giver dies or not.
There are a few other types of gifts which are also permanently excluded.
(Thanks for your continued input on this by the way..... as you'll have noticed I'm totally clueless on many of these tax matters).
Edited by AJI on Thursday 13th June 14:41
AJI said:
So would my other half have to inform the UK government if one of her parents dies within 7 years whilst living in China?
(Thanks for your continued input on this by the way..... as you'll have noticed I'm totally clueless on many of these tax matters).
No - any IHT is payable from the estate of the person that dies, assuming their tax status makes them liable.(Thanks for your continued input on this by the way..... as you'll have noticed I'm totally clueless on many of these tax matters).
Edited by AJI on Thursday 13th June 14:41
Given the info you have given, I very much doubt this is the case.
Now stop posting and go and spend the money!!
David
AJI said:
So would my other half have to inform the UK government if one of her parents dies within 7 years whilst living in China?
This is quite complicated and my response is from memory. Edited by AJI on Thursday 13th June 14:41
It depends on her parents domicile at the time they gifted the money (and potentially on how they are taxed in China and how the double tax treaty between China and the UK works).
Domicile is broadly where her parents intend to live permanently. If they are domiciled in China at the time of the gift, the cash will only be subject to IHT if it is a UK situs asset. I can't remember the rules on situs of cash.
If her parents are UK domiciled at the time of the gift, it will be subject to UK tax, regardless of situs, but subject to how it is taxed in China and the double tax treaty.
AJI,
If your OH is planning to bank the cash, it might save her time to approach it beforehand to establish what they will need to satisfy the audit trail. This is a pretty stodgy high level overview on money laundering but if you haven't considered it already, it might give you a headstart. Financial services staff are pounded with their obligations in respect to money laundering.
http://www.fca.org.uk/about/what/protecting/financ...
If your OH is planning to bank the cash, it might save her time to approach it beforehand to establish what they will need to satisfy the audit trail. This is a pretty stodgy high level overview on money laundering but if you haven't considered it already, it might give you a headstart. Financial services staff are pounded with their obligations in respect to money laundering.
http://www.fca.org.uk/about/what/protecting/financ...
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