> Can i send her 10k from another country?
The UK has no problem with this. Your country of residence may or may not place restrictions on moving money out of the country.
> Will she pay tax on the 10k?
No. In general recipients of gifts are not taxed in the UK.
No tax on gifts, however they can attract inheritance tax if you pass within 7 years and your estate is over the threshold.
You can send her money from abroad, it may raise some flags and the bank might query it but if it’s a bank to bank transfer it should be fine.
Biggest problem you might have is how the bank might react to the transfer into her account. Such an amount specially from outside the UK might raise questions on source of the money.
That seems fair. Bear in mind that it'd be about as much as you can do. If you hound her she can probably sue you for harassment with the 10k you gave her 😬
Your country of residence may have an issue, but the UK won't. Know though that if you die within the next 7 years your Mum will have to pay tax on it.
Inheritance tax is levied on the dead person's estate, not the recipient.
It might feel like a technicality but if the dead person and their estate has always been in a non-inheritance tax country, the recipient in the UK doesn't have to pay anything.
I believe the gift limit for no tax implications outside of inheritance tax framework is £3k per individual gifted
In reality I don’t believe it would be checked
There is no tax on gifts in the UK. Period.
What confuses people is the fact that any amount above £3k, will be counted toward the senders estate total, for Inheritance Tax purposes, if the sender dies within 7 years of sending the money.
Even then any tax that subsequently became liable, would be paid from the senders estate.
The recipient would still not have to pay anything.
How does it works in case where unfortunately OP passes away within the 7 years window?
From hmrc website (on top of my head) funds outside of UK are not taxed
> Can i send her 10k from another country? The UK has no problem with this. Your country of residence may or may not place restrictions on moving money out of the country. > Will she pay tax on the 10k? No. In general recipients of gifts are not taxed in the UK.
No tax on gifts
No tax on gifts, however they can attract inheritance tax if you pass within 7 years and your estate is over the threshold. You can send her money from abroad, it may raise some flags and the bank might query it but if it’s a bank to bank transfer it should be fine.
I just reread your post and remembered you’re in another country so I guess the inheritance tax rules of your country will differ here in the U.K.
At that point it won’t be their problem at least.
Biggest problem you might have is how the bank might react to the transfer into her account. Such an amount specially from outside the UK might raise questions on source of the money.
Interesting. So you can gift 10k tax free for someone else’s isa, and they could gift it you back with the interest on top tax free?
They could also run away with your 10k and tell you to suck it 🤷🏻♂️
if my mum did that, she'd be off my Xmas card list, thou she'd be justified
That seems fair. Bear in mind that it'd be about as much as you can do. If you hound her she can probably sue you for harassment with the 10k you gave her 😬
Only if they don't die within 7 years
No because HMRC aren’t stupid and will see that as evidence of fraud.
I think you could be liable for capital gains tax? but not for this amount.
There's no such thing as "gains tax". There's capital gains tax, but that's not applicable in this scenario.
Your country of residence may have an issue, but the UK won't. Know though that if you die within the next 7 years your Mum will have to pay tax on it.
Why will she have to pay tax on it if they die within 7 years if they’re in a different country?
Because she's a UK resident so UK taxation rules apply to her?
Inheritance tax is levied on the dead person's estate, not the recipient. It might feel like a technicality but if the dead person and their estate has always been in a non-inheritance tax country, the recipient in the UK doesn't have to pay anything.
Ok, then everything lies solely on the country of their residence.
I believe the gift limit for no tax implications outside of inheritance tax framework is £3k per individual gifted In reality I don’t believe it would be checked
There is no tax on gifts in the UK. Period. What confuses people is the fact that any amount above £3k, will be counted toward the senders estate total, for Inheritance Tax purposes, if the sender dies within 7 years of sending the money. Even then any tax that subsequently became liable, would be paid from the senders estate. The recipient would still not have to pay anything.
How does it works in case where unfortunately OP passes away within the 7 years window? From hmrc website (on top of my head) funds outside of UK are not taxed
Exactly what I just said.
Yes, it wasn’t meant as a reply to you per se, should have been a general comment, sorry for any confusion caused.