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 TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

Hi, I am buying a house in UK and my father has send me £10,006

Customer Question

Hi, I am buying a house in UK and my father has send me £10,006 as a gift to my UK account from India. This would form part of the deposit for the house. Can you please let me know if there are any tax implications? I have mixed reviews about this topic. My mortgage advisor said its ok as its a gift, all I need is a letter stating its a gift.
Thanks
Anand
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Recipients of gifts do not pay tax on them in the UK. Assuming your father is non-UK domiciled and the gift is made from non-UK sources, there will be no exposure to UK Inheritance Tax should your father die within seven years of making the gift.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Thank you it really helps :)
Customer: replied 2 years ago.
My father in law who lives and work in uk is also gifting us £10,000. Is there tX on this then?
Expert:  TonyTax replied 2 years ago.
Thanks for accepting my answer.

Is your father in law UK domiciled? Take a look here for infromation on what domicile is. It isn't the same as UK resident.
Customer: replied 2 years ago.

Hi, father in law is Indian by origin (holds an indian passport), he is settled here and works here in UK and has a permanent residence as well.

I had a look at the link and it looks to me like he's a domicile by choice?

Expert:  TonyTax replied 2 years ago.
Thanks.

If he is considered to be UK domiciled and he makes a gift to you, you won't pay UK tax on it. However, should he die within seven years of making the gift its value will be included in his estate for Inheritance Tax purposes. Take a look here and here for information on IHT.