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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I AM EXPECTING A AMOUNT OF 160K FROM MY BROTHER ABROAD

Customer Question

hI
i AM EXPECTING A AMOUNT OF 160K FROM MY BROTHER ABROAD AS A GIFT
I WILL INVEST PART OF IT IN IN A BUY TO LET PROPERTY
IS THE AMOUNT ITSELF TAXED?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

The recipients of gifts do not pay tax on them in the UK. The income it generates, however, will be subject to UK tax.

Assuming your brother is UK domiciled, so long he lives for at least seven years after the date of the gift, it will not form part of his estate for Inheritance Tax purposes. Take a look here and here (see the section "When a beneficiary or "donee" has to pay IHT) for more information on Inheritance Tax.

I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15753
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

my brother is not a uk resident and never been

so does this change your answer?

thx

Expert:  TonyTax replied 2 years ago.
If he is non-UK domiciled which is not the same as non-resident, then only his UK based estate would be subject to IHT in the UK. That would exclude UK bank accounts denominated in non-UK currency. If the funds being gifted to you come from a non-UK source, then they would be beyond the reach of UK IHT in any event so long as your brother is non-UK domiciled.

Take a look here for information on domicile.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15753
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Hi Tony
Can you please explain what does it mean the income it generates
ncome it generates, however, will be subject to UK tax.
Does it mean any revenue generated from interest on or future investment, or shall I add them to my annual income and claiming them ?
Expert:  TonyTax replied 1 year ago.
If you put the £160,000 on deposit in a bank and earn interets or buy a property which you let and receive rental income form , the income will be taxable in the UK.

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