Can you 'gift' (give) people money from UK to Oz?
Oct 24th 2006, 2:54 am
#1
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Can you 'gift' (give) people money from UK to Oz?
Just wondering if there is a limit on this and whether or not there are tax implications?
Thanks to anyone who can help.
Thanks to anyone who can help.
Oct 24th 2006, 4:05 am
#2
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Re: Can you 'gift' (give) people money from UK to Oz?
Originally Posted by The Jones Family
Just wondering if there is a limit on this and whether or not there are tax implications?
Thanks to anyone who can help.
Thanks to anyone who can help.
Oct 24th 2006, 4:50 am
#3
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Re: Can you 'gift' (give) people money from UK to Oz?
The details here might be useful:
http://www.hmrc.gov.uk/cto/customerguide/page6.htm
Note that the annual IHT exemption referred to by the previous poster is £3,000.
Best regards.
http://www.hmrc.gov.uk/cto/customerguide/page6.htm
Note that the annual IHT exemption referred to by the previous poster is £3,000.
Best regards.
Oct 24th 2006, 5:14 am
#4
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Re: Can you 'gift' (give) people money from UK to Oz?
That is incredibly useful, thanks so much - excellent
K Sent
K Sent
Oct 24th 2006, 5:40 am
#5
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Re: Can you 'gift' (give) people money from UK to Oz?
Originally Posted by Alan Collett
The details here might be useful:
http://www.hmrc.gov.uk/cto/customerguide/page6.htm
Note that the annual IHT exemption referred to by the previous poster is £3,000.
Best regards.
http://www.hmrc.gov.uk/cto/customerguide/page6.htm
Note that the annual IHT exemption referred to by the previous poster is £3,000.
Best regards.
Oct 24th 2006, 6:09 am
#6
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Re: Can you 'gift' (give) people money from UK to Oz?
Originally Posted by Alan Collett
The details here might be useful:
http://www.hmrc.gov.uk/cto/customerguide/page6.htm
Note that the annual IHT exemption referred to by the previous poster is £3,000.
Best regards.
http://www.hmrc.gov.uk/cto/customerguide/page6.htm
Note that the annual IHT exemption referred to by the previous poster is £3,000.
Best regards.
You can 'give' away any amount in the UK, provided that you don't die within 7 years of the date of transfer. If you do pop your clogs within 7 years, then the proceeds of the transfer become assessable as CGT, and you lose the IHT free bit. Is that right?
What happens if a gift is made, say 500,000 UKP to me, overseas, by my parents, then they die in a car crash the next week, how do the IR attempt to claim their blood money? Any ideas? If the money is out of their jurisdiction, how difficult is it for them to get it back?
Would I have technically broken any laws (given that I am living in Australia) if I told them to stick it?
S
Oct 24th 2006, 6:27 am
#7
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Re: Can you 'gift' (give) people money from UK to Oz?
Comments below in BLUE CAPITALS.
Best regards.
Best regards.
Originally Posted by Swerv-o
My understanding was this:
You can 'give' away any amount in the UK, provided that you don't die within 7 years of the date of transfer. If you do pop your clogs within 7 years, then the proceeds of the transfer become assessable as CGT, and you lose the IHT free bit. Is that right?
=> NOT CORRECT. IT'S A BROAD SUBJECT, BUT A GIFT TO ANOTHER INDIVIDUAL IS WHAT IS CALLED A "POTENTIALLY EXEMPT TRANSFER". IF THE DONOR SURVIVES FOR 7 YEARS AFTER MAKING THE GIFT THE VALUE OF THE GIFT IS IGNORED WHEN COMPUTING THE VALUE OF THE ESTATE OF THE DONOR UPON HIS OR HER EVENTUAL DECEASE.
=> IF THE DONOR DIES WITHIN 3 YEARS OF MAKING THE GIFT 100% OF THE VALUE OF THE GIFT IS INCLUDED WITHIN THE VALUE OF THE DECEASED'S ESTATE (SUBJECT TO ANY OTHER IHT EXEMPTIONS THAT MAY BE AVAILABLE).
=> DEATH BETWEEN 3 AND 7 YEARS FROM THE DATE OF MAKING THE GIFT MEANS A % OF THE GIFT IS TAXABLE.
=> THE TAX PAYABLE UPON DEATH IS IHT, NOT CGT.
What happens if a gift is made, say 500,000 UKP to me, overseas, by my parents, then they die in a car crash the next week, how do the IR attempt to claim their blood money? Any ideas? If the money is out of their jurisdiction, how difficult is it for them to get it back?
Would I have technically broken any laws (given that I am living in Australia) if I told them to stick it?
=> THIS WOULD BE AN ISSUE FOR THE ESTATE AND THE EXECUTORS; THEY WOULD BE REQUIRED TO SUBMIT AN ACCOUNT TO THE UK REVENUE AND TO PAY RELEVANT IHT IN ORDER THAT THEY COULD OBTAIN PROBATE. AS YOU MAY KNOW ALREADY, EXECUTORS REQUIRE PROBATE IN ORDER THAT THEY CAN ADMINISTER THE ESTATE OF THE DECEASED IN ACCORDANCE WITH THE TERMS OF THE WILL.
S
You can 'give' away any amount in the UK, provided that you don't die within 7 years of the date of transfer. If you do pop your clogs within 7 years, then the proceeds of the transfer become assessable as CGT, and you lose the IHT free bit. Is that right?
=> NOT CORRECT. IT'S A BROAD SUBJECT, BUT A GIFT TO ANOTHER INDIVIDUAL IS WHAT IS CALLED A "POTENTIALLY EXEMPT TRANSFER". IF THE DONOR SURVIVES FOR 7 YEARS AFTER MAKING THE GIFT THE VALUE OF THE GIFT IS IGNORED WHEN COMPUTING THE VALUE OF THE ESTATE OF THE DONOR UPON HIS OR HER EVENTUAL DECEASE.
=> IF THE DONOR DIES WITHIN 3 YEARS OF MAKING THE GIFT 100% OF THE VALUE OF THE GIFT IS INCLUDED WITHIN THE VALUE OF THE DECEASED'S ESTATE (SUBJECT TO ANY OTHER IHT EXEMPTIONS THAT MAY BE AVAILABLE).
=> DEATH BETWEEN 3 AND 7 YEARS FROM THE DATE OF MAKING THE GIFT MEANS A % OF THE GIFT IS TAXABLE.
=> THE TAX PAYABLE UPON DEATH IS IHT, NOT CGT.
What happens if a gift is made, say 500,000 UKP to me, overseas, by my parents, then they die in a car crash the next week, how do the IR attempt to claim their blood money? Any ideas? If the money is out of their jurisdiction, how difficult is it for them to get it back?
Would I have technically broken any laws (given that I am living in Australia) if I told them to stick it?
=> THIS WOULD BE AN ISSUE FOR THE ESTATE AND THE EXECUTORS; THEY WOULD BE REQUIRED TO SUBMIT AN ACCOUNT TO THE UK REVENUE AND TO PAY RELEVANT IHT IN ORDER THAT THEY COULD OBTAIN PROBATE. AS YOU MAY KNOW ALREADY, EXECUTORS REQUIRE PROBATE IN ORDER THAT THEY CAN ADMINISTER THE ESTATE OF THE DECEASED IN ACCORDANCE WITH THE TERMS OF THE WILL.
S
Oct 24th 2006, 6:32 am
#8
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Re: Can you 'gift' (give) people money from UK to Oz?
Originally Posted by Alan Collett
Comments below in BLUE CAPITALS.
Best regards.
Best regards.
Not that I was suggesting such a course of action, but it is interesting to see what could happen in those circumstances. Unfortunately, my parents arn't that wealthy!
Do you deal with IHT planning in your professional capacity?
S
Oct 24th 2006, 6:36 am
#9
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Re: Can you 'gift' (give) people money from UK to Oz?
Yep, it has been known ...
Best regards.
Best regards.
Originally Posted by Swerv-o
Thanks for that Alan,
Not that I was suggesting such a course of action, but it is interesting to see what could happen in those circumstances. Unfortunately, my parents arn't that wealthy!
Do you deal with IHT planning in your professional capacity?
S
Not that I was suggesting such a course of action, but it is interesting to see what could happen in those circumstances. Unfortunately, my parents arn't that wealthy!
Do you deal with IHT planning in your professional capacity?
S
Oct 24th 2006, 7:06 am
#10
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Re: Can you 'gift' (give) people money from UK to Oz?
You can give me some, just write a cheque out to Lord Pom Percy. 
Oct 24th 2006, 7:10 am
#11
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Re: Can you 'gift' (give) people money from UK to Oz?
Originally Posted by Lord Pom Percy
You can give me some, just write a cheque out to Lord Pom Percy.
Now, where did I leave my cheque book...?
S
