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Cash Gifts

Cash gift received from brother

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Hi

 

If a UK citizen brother who is not UK resident send cash gift to his UK resident brother of about 80k. Is this taxable for UK resident brother? The sending brother is alive. It seems "gift with reservation of benefit" and "pre-owned assets income tax charge" rules apply if brother sending money is UK resident.

As per HMRC community, its not taxable 

https://community.hmrc.gov.uk/customerforums/pt/8d15fffc-4393-eb11-8ced-...

 

 

Replies (8)

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By David Ex
10th May 2022 14:20

Accaols wrote:

It seems "gift with reservation of benefit" and "pre-owned assets income tax charge" rules apply if brother sending money is UK resident.

Could you provide some links for that analysis.

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Replying to David Ex:
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By Accaols
10th May 2022 14:48
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By Hugo Fair
10th May 2022 15:18

Can you please get your story straight if you want any (even part-relevant) responses.

1. "If a UK citizen brother who is not UK resident send cash gift to his UK resident brother of about 80k. Is this taxable for UK resident brother?"
What is the relevance (in your eyes) of the residency of the donor - assuming you mean tax residency?
Or to put it another way, what aspect of tax do you think would make the receipt of any cash gift taxable for a UK taxpayer? And does it apply to your scenario?

2. "The sending brother is alive. It seems "gift with reservation of benefit" and "pre-owned assets income tax charge" rules apply if brother sending money is UK resident."
The first sentence seems gratuitous - unless it's a not so subtle way of indicating that the donor's demise is expected imminently?
The 'rules' that you go on to mention (GWRB & POAT) are related to aspects of IHT - but that is generally chargeable on the Estate of the donor not the recipient (and fairly obviously only where the deceased is a UK taxpayer).

So what are the facts of the scenario? What aspect of taxation are you enquiring about? And what is your relationship to the two parties (donor & recipient)?

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Replying to Hugo Fair:
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By Accaols
11th May 2022 08:21

Thanks for your replies

1 - Yes tax residency because he will be liable to tax if he is UK residence and if there is any tax in this scenerio.

2- No he is alive and healthy just adding some facts. My prayers for him so he lives longer than me :)

I have mentioned in my question "Is this taxable for UK resident brother?" means recipient as the donor is not resident in UK. I am just finding most about IHT so thats why confirming if i am missing any point

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By The Dullard
10th May 2022 16:04

GWROB cannot apply in relation to a cash gift. If you think POAT applies you need to tell us where the donor got the cash from, but it won't impose a tax charge on the donee (of itself).

All probabilities point, at this stage, to you just being another random numpty who hasn't got a frigging clue.

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Replying to The Dullard:
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By Accaols
11th May 2022 08:24

He is getting cash as gift from the british citizen brother living in africa permanently. His brother received this money from EIS disposal

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By Paul D Utherone
10th May 2022 16:48

Who knows on the minimal information, but it seems unlikely.

If the UKR recipients is in business on his own account, then I would want good contemporaneous evidence that it was a gift against a future enquiry into his returns trying to say that it was unreported business income.

I suspect that any receiving bank might be looking to carry out some due diligence as to the source of a substantial credit to the account as well

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By Calculatorboy
11th May 2022 14:53

Is he a Nigerian General?

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