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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4198
Experience:  FCCA FCMA CGMA ACIS
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I am a foreigner and am not resident in UK. However I have

Customer Question

I am a foreigner and am not resident in UK. However I have a son who is a UK resident and a trainee doctor. As he cannot survive on his salary alone, I want to give him money to buy a house so he can save on the rent. Can I give him the money without any tax implications on him so he can buy a house in his own name?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
Gifts are outside the scope of UK taxation in the hands of the recipient and he is free to do whatever he likes with them so buying a house in his own name is ***** ***** There will be no UK tax to pay.
As you are not a British Citizen, nor are you resident in the UK for tax purposes the rules on Potentially Exempt Transfers do not apply to you. The taxation position in the country in which you live is a matter upon which I cannot comment.
I do hope i have helped you with your question.
Customer: replied 3 years ago.

Thank you for your answer which is very helpful. However, I got confused with your comment about "the rules on Potentially Exempt Transfers do not apply to you". I assume that this is a good thing and does not create any tax liability for my son?

Thanks

Expert:  bigduckontax replied 3 years ago.

You and your son simply do not have to worry about these as you are not living in the UK nor liable to UK tax. PETs, as they are known, are a trifle complex, but they do not apply to you. You may donate with impunity. It is, as you suggest, a very good thing.

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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.