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Gift from Abroad

Gift from Abroad

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Hello, 
I tried to get clarification on the HMRC website but I couldn't find a definitive answer.
I'm about to receive a large gift in stocks, worth ~500,000 GBP. My accountant says that the cost basis is the value of the stock at the time the gift is received. Hence if I immediately liquidate the value of the stocks I shouldn't incur in any capital gains tax. However, the donor is from abroad, in a jurisdiction that doesn't tax gift, his cost basis is 100,000 GBP. Is my cost basis different in this case?

Thank you,
Zuril

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By WhichTyler
01st Oct 2019 07:32

For the he sums involved, you and the donor should be able to get good advice from your respective accountants...

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Replying to WhichTyler:
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By Zuril
01st Oct 2019 14:58

WhichTyler wrote:

For the he sums involved, you and the donor should be able to get good advice from your respective accountants...

I asked the accountant and he said what I wrote in the post, that the cost basis is the value at the time of the gift. That seems too good to be true, nobody pays the capital gains

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By Tax Dragon
01st Oct 2019 08:52

Have you told us everything, or provided a snapshot of part of a larger sequence of planned events?

(And I agree with WhichTyler.)

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Replying to Tax Dragon:
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By Zuril
01st Oct 2019 15:00

The gist of the case is in the post. Donor doesn't pay any capital gain, what is the taxable basis for the recipient?

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Replying to Zuril:
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By Tax Dragon
01st Oct 2019 15:03

If there's no CGT in the other jurisdiction, why doesn't the donor sell the stock and give you the cash?

(Please appreciate that that is a question, not a recommendation.)

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Replying to Tax Dragon:
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By Zuril
01st Oct 2019 16:13

The donor is in the USA, there would be a capital gain tax if he sells the stock, but there is no capital gain if he donates a house or another asset up to a lifetime exemption of $11.18 million

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Replying to Tax Dragon:
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By Zuril
01st Oct 2019 16:38

In other words, the USA tax law assumes that the CG tax is paid by the recipient, the UK tax law assumes that the tax is paid by the donor. So if someone donates from USA to UK it look likes it would be tax free, too good to be true

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dk
By SpaceDuck
01st Oct 2019 13:26

.

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