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The boss of the company (not based in the UK) I used to work earlier, has sold his company. He is giving a cash gift to certain ex-employees which he intends to transfer from his personal account. He himself is not a tax resident of the UK.

My question here is: do I need to pay tax on the amount given that it's a gift?

P.S. Not sure if this information is needed, but I have moved to the UK last year and am a tax resident of the UK for this FY.

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  • Does this question help? money.stackexchange.com/questions/37105/…
    – Ganesh Sittampalam ♦
    Commented Sep 9, 2021 at 11:12
  • Thank you for sharing this. However my case is slightly different. 1. Money is being transferred from a personal account to a personal account. 2. I'm an ex-employee ( it's been more than a year since i left that organization)
    – Aditya
    Commented Sep 9, 2021 at 11:29
  • Agreed, that's why I didn't just mark it as a duplicate. Also the non-UK dimension changes things. You probably need to consider both UK tax liability and liability in the country the company/boss are in/you were in (and if those are different it'll be even more complicated).
    – Ganesh Sittampalam ♦
    Commented Sep 9, 2021 at 11:43
  • Yeah. It's quite complicated. I'm an Indian national and currently an NRI , my ex-boss is also an NRI based out of singapore. As per my current understanding, I do not have to pay any gift tax in India if the transfer is from an NRI to an NRI to an international bank account. I'm looking to understand if this transfer falls under the definition of a "gift" in the UK and hence is non-taxable. Basis that I'll be able to make the decision of getting the money transferred to India or the UK ,since they both are different tax rates for the same amount.
    – Aditya
    Commented Sep 9, 2021 at 12:12
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    This part of the answer I referenced seems most relevant: "EIM01460 gives some other non-taxable examples of this nature which also bolster this point of view slightly: ... Gift by shareholders to a person who wound up the company ... Gift of shares to the director of a company ... A gift to mark appreciation of work done by an employee during a period of secondment"
    – Orange Coast- reinstate Monica
    Commented Sep 11, 2021 at 0:05

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