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bigduckontax, Accountant
Category: Tax
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We're in the process of setting up a new start up in the UK.

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Hi, we're in the process of setting up a new start up in the UK. We are not yet registered as business (as we are not trading yet). All we are doing is exploring the viability of our idea with a product design firm in India. For this, we need to pay them. We have personal savings in India which we would like to use for this service or potentially a gift of money from my parents (who live in India). Is it fine to pay them from these personal funds and is there anything else we need to consider both in terms of tax implications/whether we need to be registered as a business before we make these transactions and also the usage of funds saved in India for a UK based business.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

At this stage, it is a gift and the UK has no Gifts Tax regime. As for your own funds you can do whatever you like with those.

Customer: replied 4 months ago.
Thank you, ***** ***** register the business can we still use money that is gifted to us for the business?

You can, you can always post it as a loan and pay it back in due course.

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Thank you for your support.