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Vineet S
Vineet S,
Category: Law
Satisfied Customers: 1684
Experience:  Freelance Solicitor at Self Employed
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I am an Egyptian doctor working in the Uk for 2 years now,

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Hi,
JA: Hi. How can I help?
Customer: I am an Egyptian doctor working in the Uk for 2 years now, and I am looking to buy my first home. My family in Egypt are willing to help me with the deposit, so I wanted to know how to bring in this gifted money in a formal legal way?
JA: Where are you? It matters because laws vary by location.
Customer: UK
JA: What steps have you taken so far?
Customer: Nothing yet
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no

Welcome to Just Answer, I am a practicing solicitor in England and Wales and I will be dealing with your case today.

Kindly note, I am not available for phone calls at the moment, however I can easily assist you via this online chat.

Customer: replied 20 days ago.
ok

Hi there,

Your family have to make a gift deed for your deposit amount, declaring that it is a gift and they would not have any interest/equity in your home. They have to provide source of those funds as well.

You would have to declare to your lender bank , that you are receiving gift deposit out of EU, they can give you some forms to get signed from the person making this gift.

Customer: replied 20 days ago.
Okay, and is it okay if my family transferred the money to my account in Egypt and then I transfer it to my UK bank account? or, do they need to directly transfer it to my UK bank account?

They can directly transfer it to your UK bank account.

Customer: replied 20 days ago.
I understand, but would it be an issue if they transferred it to my Egyptian bank account and then I do a self transfer?

if they transfer it to your Egyptian bank account, then there will be less paperwork,

As Your bank would not have to ID the donor ,

Customer: replied 20 days ago.
am I allowed to legally self-transfer this sum of money (nearly 150,000 GPB) from my Egyptian bank to my UK one? will that raise any issues with the HMRC?

As long as you would be able to prove the source of funds , there will not be any issue.

Another advantage of self -transferring from your own account, is that it would not be subject to inheritance tax here in the UK.

You should inform your mortgage advisor/Lender regarding this arrangement.

Customer: replied 20 days ago.
By IHT, You mean if the family member gifting me the money died within 7 years after I received the gift?

Exactly, if the person making the gift dies within 7 yrs , then you have to pay 40% inheritance tax , as the gift would be treated as inheritance.

Customer: replied 20 days ago.
Regarding the source of funds, If I get bank statements that the funds were in my mother account and then it was transferred to my Egyptian account as a gift will that be enough as source of funds?

Yes, that would be suffice.

Customer: replied 20 days ago.
then when I do the self-transfer, I wouldn't be subject to IHT in Uk, is that correct?

Yes,

Customer: replied 20 days ago.
is there a minimum amount of time where the funds need to stay in my Egyptian bank account before I can self-transfer?

No, there is no such minimum time limit requirement.

Customer: replied 20 days ago.
if I have any personal savings in Egypt, am I allowed to bring in this money to the uk? will there be any tax implications?

You can transfer your own money in the UK, without paying tax here.

If you need further assistance, please let me know.

Thank you and all the best.

Customer: replied 20 days ago.
Thanks

My pleasure, thanks again.

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