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Sam
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, I am a UK citizen, living and working in London.

Resolved Question:

Hello,
I am a UK citizen, living and working in London. I am sole shareholder of a SME in Italy. My mother wants to gift me a sum of money (approx €200,000) by transfer into my UK bank account. I would like to use this amount to inject capital into my Italian business.
Please could you let me know what the tax implications of this would be?
Many thanks
Patrick
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi Patrick

Thanks for your question - I am Sam and I am one of the UK tax experts.

This has no tax implications, as you are not liable to tax on the receipt of this gift - and the fact you choose to then inject it into your business - just make sure that you list this as an injection of capital rather than earned income

However I assume you are declaring the income that you earn from this business abroad to HMRC as you are liable to tax on your worldwide income as a UK citizen ( and would be as a non UK citizen if any of the money was remitted to the UK)

Let me know if you require any additional information from my response

Thanks

Sam

Customer: replied 1 year ago.

Thank you Sam.

I have so far not paid tax on any income from the Italian business (although the business itself of course pays Italian corporation tax) as I have never received any income / dividends - all revenue from the Italian business is reinvested in the business and pays the directors' salaries.

I assume that so long as I don't see a penny I should be fine viz HMRC on this front?

Many thanks

Patrick

Expert:  Sam replied 1 year ago.

Hi Patrick

Thanks for your response

Your assessment of the situation is correct - if you draw no income as a director from the company - then there is no UK tax liability arising.

As long as the directors (if UK based) are declaring the income from their salaries, then all obligations in the UK are being met.

Let me know if you require any additional information - but it would be appreciated if you would rate (click accept) as this allows Just Answer to credit me for my time

Thanks

Sam

Sam, Accountant
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