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maximum $$$ to gift someone in the uk

maximum $$$ to gift someone in the uk

Old Sep 19th 2007, 11:49 am
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Default maximum $$$ to gift someone in the uk

I want to gift my sister some $$$ for her forth coming wedding.

Anyone know what is the maximum $$$ to gift without her having to pay taxes on it.

I will be wiring the cash from USA to her UK bank account was going to wire her $20k but want to make sure it doesnt get taxed.
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Old Sep 19th 2007, 1:42 pm
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Default Re: maximum $$$ to gift someone in the uk

Don't know if the IRS would be interested at all, but this is more a question for the Inland Revenue (or whatever they're called in the UK now). Apparently the workers on the phone helpline are incredibly helpful (although I have never used it) - why not call them?

But wait - didn't you use to be able to write off gifts to family members against tax? I don't know.

Last edited by lapin_windstar; Sep 19th 2007 at 1:56 pm.
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Old Sep 19th 2007, 1:44 pm
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Default Re: maximum $$$ to gift someone in the uk

I don't know but can I be your brother and get a belated wedding present?!
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Old Sep 19th 2007, 2:10 pm
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Default Re: maximum $$$ to gift someone in the uk

i not looking for any kind of tax deduction my side in the usa, want to make sure she doesnt get taxed on it. tried to do a search on the net but i cannot seem to find anything definitive.
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Old Sep 19th 2007, 2:37 pm
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Default Re: maximum $$$ to gift someone in the uk

She won't get taxed in the UK. There is no limit on how much you can send as a cash gift.

Gina
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Old Sep 19th 2007, 2:58 pm
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Default Re: maximum $$$ to gift someone in the uk

thanks for the info
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Old Sep 19th 2007, 3:48 pm
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Default Re: maximum $$$ to gift someone in the uk

Have a look at http://www.irs.gov/pub/irs-pdf/p950.pdf - may have some relevent info.
I'm not clear where the two parties involved are here. Both in the US? US to UK?
UK to US?
Have a look at www.taxationweb.co.uk which has some postings or try posting on the www.fool.co.uk boards for the country receiving the money (There's a UK and US site)

Good luck and I'm also free for surrogate family roles ;-)
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Old Sep 19th 2007, 4:29 pm
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Default Re: maximum $$$ to gift someone in the uk

Be sure to read the IRS link in mayhemuk's post. Regardess of what your sister has to do, if you give her $20,000 you probably will have to file a gift tax return (IRS form 709) in the USA. Even if you don't owe any tax on the gift, they want you to file a return if the amount is over $12,000.
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Old Sep 19th 2007, 4:34 pm
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Lightbulb Re: maximum $$$ to gift someone in the uk

An alternative way to give may be to send UK gift vouchers.

There is an extensive list here from all kinds of major UK stores and businesses (inc. Selfridges, John Lewis, House of Fraser, Habitat, Harvey Nichols, Debenhams, Argos, Boots, WH Smith, Asda etc.) and there is also a wedding registry.

I'm going to send some vouchers for Christmas gifts this year to my rellies in the UK. This company also takes all the major US credit cards inc. Amex:

http://www.voucherexpress.co.uk/

(I haven't yet used this company myself but an expat recommended them and I guess if you pay by credit card your money is safe)

Last edited by Englishmum; Sep 19th 2007 at 4:37 pm.
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Old Sep 19th 2007, 4:43 pm
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Default Re: maximum $$$ to gift someone in the uk

Is your sister ever planning on moving to the USA? If so, give her $20,000 worth of Marmite and Heinz Baked Beans so that we won't have to listen to her whinging when she joins up at BE...
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Old Sep 19th 2007, 4:54 pm
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Default Re: maximum $$$ to gift someone in the uk

Originally Posted by GinaUK View Post
She won't get taxed in the UK. There is no limit on how much you can send as a cash gift.

Gina
really? I thought there was...hmmm...cool.
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Old Sep 19th 2007, 5:08 pm
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Default Re: maximum $$$ to gift someone in the uk

i am located in NJ USA she is located in Manchester England

I was planning on wiring her $20k to help pay for her wedding/new house however I don't want her to be liable for any tax in the UK.

i looked on those websites but I cannot find anything concrete as to the answer or even somewhere I could call for clarification
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Old Sep 19th 2007, 5:48 pm
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Default Re: maximum $$$ to gift someone in the uk

Originally Posted by Bob View Post
really? I thought there was...hmmm...cool.
So did I....
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Old Sep 19th 2007, 7:10 pm
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Default Re: maximum $$$ to gift someone in the uk

Originally Posted by mrfoxy76 View Post
I want to gift my sister some $$$ for her forth coming wedding.

Anyone know what is the maximum $$$ to gift without her having to pay taxes on it.

I will be wiring the cash from USA to her UK bank account was going to wire her $20k but want to make sure it doesnt get taxed.
Here in the States it's $15k in one year. I know this as my FIL died recently and the wicked stepmother sent us one little check so far. I'm sure it is similiar other there.

Last edited by JULIEROSE; Sep 19th 2007 at 7:32 pm.
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Old Sep 19th 2007, 7:20 pm
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Default Re: maximum $$$ to gift someone in the uk

So this is my understanding:

The recipient of a gift does not pay income tax on the gift, in either the US or the UK.

The donor (or their estate) may be taxed on large gifts if they die within 7 years of making the gift (UK) or if their lifetime total of gifts exceeds $1 million (US). This is really about preventing inheritance/estate tax avoidance rather than about the taxation of gifts per se. It looks like large gifts need to be reported to the IRS in the year they are made. (I believe in the UK they only need to be reported upon death).

If you're in doubt about the UK implications, I suggest you contact HM Revenue and Customs Residency on +44 151 210 2222 - in my experience they're exceptionally helpful.
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