larjo

Hi,
So my dad wants to send over some money over the next few years to help with a house deposit. I'm trying to find out tax details.
I've read that there is no limit on monetary gifts from family, so he could send any amount of money and I would not have to pay gift tax so long as I can prove if questioned that it is infact a gift. But I've also read that if its over 10,000 it will be seen by the ATO, and will also need to be mentioned on my tax return form.
If I mention it on the tax return form will it be taxed as part of my income?

Also.. in term of doing it as an international transfer will there be any surprise costs or tax deductions?

Thanks for any help!

Bermudashorts

Gift tax? There is no such thing...

The ATO may be interested in the source of the income, that does not mean it is taxable.

The only tax consideration in the situation you describe is a potential exposure to UK inheritance tax if your father passes away in next seven years.

Beoz

Gift tax?

I send my money back to the UK in amounts under $10,000. Not that it really matters, I can send as much as I want, I've paid tax on it. I just do it to avoid attention.

john in oz

Gifts of money for a house deposit is allowable or is acceptable but you may need to get a statutory declaration to that affect or a letter so that the lender can see that it is a gift and not a loan. Then the money can be used for a deposit. If the funds are held for longer periods they normally do not ask the question as long as the money or funds have been in a bank account for a period of 3 months or more.

I hope that helps

cheers john

skinnygeorge

My Dad did the same. Not an issue. Bank never asked. They may approach you if it looks dubious and they want to know you`re not a drugs/arms/cash dealer. but a one off, I wouldn't worry. After 18 months or so here My bank said UK tax wanted permission to look at my finances. I gave permission as theres nothing to hide, Last I heard of it.