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, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

Cash gift received from parents in law abroad to UK resident

This answer was rated:

Cash gift received from parents in law abroad to UK resident - tax implications?


Are the parents in law UK nationals?

Customer: replied 1 year ago.
Hi, No they are residents in India.

Assuming they are not UK nationals (I didn't ask about residency as you told me they lived abroad) and the gift is made from assets held outside the UK, there will be no Inheritance Tax implications for your in laws when they die.

UK Inheritance Tax is not normally paid by the recipient of a gift or legacy so you won't have any IHT or other taxes to pay in the UK on the gift. It can only be paid by the recipient if the deceased estate does not have sufficient funds to pay it on a gift made in the seven years before the death of the donor. That won't apply to your in laws unless the gift is made from UK held assets which exclude cash held in UK banks in a currency other than British Pounds.

I hope this helps but let me know if you have any further questions.

Customer: replied 1 year ago.
Great thank you. Can you please tell me if I should declare the gift on my income tax return?

You don't have to disclose the gift in your tax return. However, you should be able to prove where it came from if asked by HMRC. A letter from your in laws should suffice.

You might also give advance notice to your bank to avoid their money laundering procedures kicking in especially if it will be paid to you electronically.

TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
OK that's really helpful. Thanks for your time.