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Hello, I'm Keith and happy to help you with your question.
Nor is there a gift tax in the UK. A gift is outside the scope of UK tax. It does create a Potentially Exempt Transfer (PET) in your parents estate in the UK were it subject to Inheritance Tax (IT) and above 325K on demise. As I do not know your parents residency or domicile I cannot comment on any IT liability.
The transfer may be investigated by the authorities as part of the precautions against money laundering.
Once the money is in the UK and invested then any income would be subject to Income Tax and have to be reported in the annual self assessment return.
Thanks, XXXXX XXXXX live in australia. So it would only be liable for tax if it was after they died, as then its IT, is that correct?
thanks. so if it's just a gift now and parents are still alive (so it's not inheritance) and we then pay tax on whatever interest is earned on it before it was spent then there shouldn't be any further tax implications, is that correct? does it have to be less than £325k or is that only if it's inheritance
Thanks, XXXXX XXXXX to assume that as my parents have no UK estate and are currently living in australia ( no intention of living in the UK) then this gift is not liable for tax, just whatever interest is earned on it before it's spent or used will be declared here as tax ( even though i don't earn an income in UK) When they do die though if i'm to receive an inheritance it will be taxed at 40%.