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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15660
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Will I have to pay UK tax on a cheque-gift of money from my

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Will I have to pay UK tax on a cheque-gift of money from my Aunt in the USA (She is married to a US citizen and she has lived there for over 40 years). Do I need to inform anyone if we were to receive a cheque? We have had a couple of cheques over the past feww years for a few thousand pounds but what if we were to get a cheque for a considerable amount of money?
Submitted: 5 years ago.
Category: UK Tax
Expert:  Tony Tax replied 5 years ago.

You won't have to pay any tax in the UK on a gift from your aunt. If you put it on deposit, any interest you earn will be taxable.

It may be as well to ask your aunt to write you a letter confirming that she is making a gift to you of £X which you can show to the bank as proof of the provenance of the money which should satisfy their money laundering obligations.

Let me know if you have any queries.
Customer: replied 5 years ago.
Hi, so presumably it's because she lives in America that we don't have to inform anyone or pay anything on this money that we may get? Because when I 've looked on UK tax Govt websites they seem pretty strict on what a UK person may give as a cash gift (up to £3000 I think?) Getting a letter from her if she does give us a cheque won't be a problem. So hypothetically, if we were to get a cheque for say, £150,000, that would then be our money to do with as we wanted? (And obviously pay tax on any interest earned?) thanks
Expert:  Tony Tax replied 5 years ago.
It's got nothing to do with where your aunt lives. Gifts are not taxable in the hands of the recipient.

The £3,000 you refer to is the most that can be gifted paid to one individual without Inheritance Tax consequences. As your aunt is a US citizen she is almost certainly domiciled there by choice (as opposed to her place of birth) given how long she has lived there so its unlikely that there will be any UK IHT consequences should she not survive seven years from the date of the gift.

You are free to do what you want with the money.
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