How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3671
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

My mother is going to send me around £50K from Dubai, UAE

Resolved Question:

My mother is going to send me around £50K from Dubai, UAE to assist me in securing a mortgage for buying my first house.
I would like to know, do I need to declare this money to HMRC? If yes then will I be paying tax.
Please help me.
Thanks
A
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
This won't attract a tax charge (i.e capital gains) and you do not need to declare it HMRC per say (assuming you do to have any financially means tested benefits).
However the cash gift may attract income tax if you earned interest on it, and it could attract inheritance tax but if your mother survives 7 years from the gift and is based in the UAE this is unlikely to be an issue.
If you are concerned about the gift nature, you could structure it as an interest free, unsecured loan that would effectively only be repaid if your mother went bankrupt.
Can I assist any further?
Kind regards
AJ
Customer: replied 2 years ago.

It will be going into my Islamic current account in UK. Which means no interest is earned. So that means no income tax or inheritance tax, right?

Also do I have to get any letter from her regarding this transaction?

I just want to make sure I am not doing anything illegal or avoiding tax.

Thanks

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Yes that is correct - there won't be any income tax.
If it is just a gift then a letter is not entirely necessary - but your solicitor may want to know where the funds came from for their Anti Money Laundering Checks- so a letter for the proof of funds may help.
I look forward to hearing from you.
Kind regards
AJ
Alex J. and 2 other Law Specialists are ready to help you