I was born in India and came to the UK 11 years ago when I was 20 years old. I'm a British Citizen and hold a UK bank account.

I also have an Indian bank account which is managed by my father in India. Up until now, we haven't transferred any money from my Indian bank account to my UK bank account.

My Grandmother is intending to gift me some money in my Indian bank account.

Would I incur any taxation for this Gift in UK? Does it change if I transferred that gifted money into my UK bank account and used it towards a house deposit here in the UK?

  • Can you be more specific about relative? [Brother/uncle/etc] I guess you are looking to know if this is taxable in UK or not? From India point of view, the receiver of gift if Indian needs to pay gift tax.
    – Dheer
    Commented Sep 11, 2015 at 15:16
  • I am British citizen so I wanted to know if I would be taxed here in the UK. Gift by my grandmother.
    – Daisy
    Commented Sep 11, 2015 at 17:03

2 Answers 2


You won't be subject to any UK tax on this, no matter how large the gift.

Most importantly, there's no gift tax in the UK.

The UK does have inheritance tax which also applies to gifts from the living if the donor dies within 7 years of making the gift. However it applies to the donor not the recipient, so since the donor is not in the UK, it's not relevant.


Inheritance tax also depends upon the residence and domicile criteria.

If you are a resident in the UK with non-domiciled status, you will be exempted from IHT from the gifts you will receive.

If you are domiciled in the UK, then you come under IHT rules.

Please correct me if I am wrong.

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