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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am the UK citizen residing in the UK and my parents

Resolved Question:

Hello, i am the UK citizen residing in the UK and my parents are the citizens of a foreign country and reside there. My parents have an offshore account which is funded with their money, i do not contribute any of my money there. However, i have a POA for anything to do with this account, including trading/investing. Am I potentially liable for any tax arising from the investment activity on this account?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thanking you for your question. Provided you don't have any beneficial interest in the account and are merely operating the account on your parents behalf, you are not liable to any tax arising from the investment activity. I hope this is helpful and answers your question.If you have any other questions, please ask mebefore you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Thank you for your responseWould occasional transfers in the form of free financial aid from the aforementioned account into my UK bank account cause any problems?
Customer: replied 1 year ago.
Also, is it possible to treat your responses as an official tax advice? If so, are you able to issue a formal opinion based on information submitted by me?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply. I am not sure what you mean by free financial aid. If your parents were to occasionally gift you small amounts , these would be out of scope of UK taxation. You should be mindful of the nature of transfer of funds.I am a tax advisor and not an offical of an organisation. I am not in a position to issue a formal opinion as such, I'm afraid.I hope this is helpful and answers your question.
Customer: replied 1 year ago.
Thanks, ***** ***** formal paper/opinionUnderstand from your reply that occasional transfers shouldn't be a problem, is it possible to get a further guidance as to the amounts i.e. is there any thresholds to keep in mind? Also, would appreciate if you can elaborate on what you mean when you say I should be mindful of the nature of transfer of funds?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.If any payment is deemed a return for services rendered then it would be taxable income and chargeable to income tax. There is no threshold as such for non residents and foreign nationals. If your parents were UK Nationals then any gift up to £3k in a tax year would be exempt for inheritance tax purposes. I hope this is helpful and answers your question.If there are no more issues I will appreciate if you would kindly rate/accept the service Iprovided to ensure I get credited for it by Just Answer.
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer. Best wishes