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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15708
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My mother is american, never lived in the UK, she is selling

Customer Question

Customer: my mother is american, never lived in the UK, she is selling her london property and would like to gift the money to my sibling and I to our UK bank accounts, can we receive this gift money in the UK without paying income tax or IHT, my sibling and I live abroad and are also non UK residents. Thanks p.s. she is relatively young and healthy so we expect her to live more than 7 years
JA: Thanks. Can you give me any more details about your issue?
Customer: the value of the property will exceed the 325000 threshold no 40% payment on the amount above that if she survives for 7 years?
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Submitted: 1 year ago.
Category: UK Tax
Expert:  Tony Tax replied 1 year ago.

Hi.

A non-domiciled individual's estate will only be liable to Inheritance Tax in the UK on UK based assets which excludes foreign currency accounts held in UK banks or other financial institutions. Should your mother die within seven years of making a gift from UK assets, then its value will remain in her estate for IHT purposes though the IHT charge would start to taper away after three years. Take a look here for more information on that and here for information on transferring a partially or fully unused IHT nil-rate band.

From 6 April 2015, gains made by non-UK resident owners of UK residential property are potentially liable to Capital Gains Tax in the UK. Take a look here for more information on that.

The recipients of gifts do not pay tax on them in the UK. IHT would only be payable by a recipient on their share of a gift if the deceased estate did not have the funds to pay it. Take a look here for more information.

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

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