A New UK Tax?

[yogi100 1,925]

This is a new one on me.

 

My pal lives in Pattaya and is reasonably financially secure. He decided to send his three adult offspring back in the UK 10,000 GBPs a piece. He has his state pension and a local authority pension and some savings.

 

He sent the three cheques off and soon received a phone call from his daughter who had taken her cheque into her bank to deposit it. She was informed that deposits over 3,000 pounds were now subject to a tax. This is possibly because the sum was a gift, she did not clarify the reason nor did she tarry to find out how much the tax would be, she simply walked out with the cheque in disgust.

 

She is sending the cheque back to her father as she resents contributing to the legions of freeloaders now resident in the UK.

 

Any Brits heard of this latest rip off?

[bigmick 840]

This is a new one on me.

 

My pal lives in Pattaya and is reasonably financially secure. He decided to send his three adult offspring back in the UK 10,000 GBPs a piece. He has his state pension and a local authority pension and some savings.

 

He sent the three cheques off and soon received a phone call from his daughter who had taken her cheque into her bank to deposit it. She was informed that deposits over 3,000 pounds were now subject to a tax. This is possibly because the sum was a gift, she did not clarify the reason nor did she tarry to find out how much the tax would be, she simply walked out with the cheque in disgust.

 

She is sending the cheque back to her father as she resents contributing to the legions of freeloaders now resident in the UK.

 

Any Brits heard of this latest rip off?

 

 

I have not heard of this but would appreciate it if your friend could find out some more and you let us all know.

 

I knew about making larger deposits of 5000 pounds in cash and the implications of that, but not for cheques.

 

Please let us know

[jacko 8,822]

Yes I was aware there was a limit on tax free gifts.

Otherwise it would be used as a tax avoidance.

Here is some info.

[yogi100 1,925]

I have not heard of this but would appreciate it if your friend could find out some more and you let us all know.

 

I knew about making larger deposits of 5000 pounds in cash and the implications of that, but not for cheques.

 

Please let us know

 

Well from what we have gathered the banks are duty bound to keep a record of such transactions should the situation arise at some time in the future that the giver of the cheque should decease and his estate become liable for inheritance tax.

 

Any such gifts made in the seven years prior to his or her death will be taken into account and will form part of the deceased's estate.

 

So what they can't nick from you when you're alive they'll make sure they get when you're dead. However the family can receive some consolation from the fact that their parents' thrifty nature has helped fund the Indian Space Program, their nuclear weapons capability and starving children in Pakistan.

[papillon 695]

How would the bank know the money was a gift? Could be payment for something.

[bratpack 91]

How would the bank know the money was a gift? Could be payment for something.

The assumption is that it is a gift,u have to prove its not,a big difference

[monochromeman 41]

Well from what we have gathered the banks are duty bound to keep a record of such transactions should the situation arise at some time in the future that the giver of the cheque should decease and his estate become liable for inheritance tax.

 

Any such gifts made in the seven years prior to his or her death will be taken into account and will form part of the deceased's estate.

 

So what they can't nick from you when you're alive they'll make sure they get when you're dead. However the family can receive some consolation from the fact that their parents' thrifty nature has helped fund the Indian Space Program, their nuclear weapons capability and starving children in Pakistan.

 

"Under plans unveiled by David Cameron, Pakistan will get upto £446m of taxpayers cash by 2014" Reported in many UK papers yesterday. For education and health.

Edited April 5, 2013 by monochromeman

[jacko 8,822]

"Under plans unveiled by David Cameron, Pakistan will get upto £446m of taxpayers cash by 2014" Reported in many UK papers yesterday. For education and health.

I think the taxi drivers from my home town send that much back every other week.

[The_Fat_Controller 25]

As a recipient of the gift, you are NOT liable to pay any tax other than that accrued on any interest you may receive on the money.

 

It is not the bank's responsibility to advise you of the tax position of gifts as there is no tax to pay.

 

They do have anti money-laundering considerations, but that is all.

Edited April 6, 2013 by The_Fat_Controller

[bigmick 840]

So what would be wrong if the man in question gave his daughter 4 cheques at 2500 pounds each. Would that still be a problem

[jacko 8,822]

As a recipient of the gift, you are NOT liable to pay any tax other than that accrued on any interest you may receive on the money.

 

It is not the bank's responsibility to advise you of the tax position of gifts as there is no tax to pay.

 

They do have anti money-laundering considerations, but that is all.

Unless the donor dies within 7 years, then there are possible Inheritance tax implications.

Seems like banks are sticking their noses in more and more often these day using 'money laundering' as an excuse.

That and the fact the Government seem to have developed a bit of authority over the banks and everyone is a tax inspector. Wasn't there some mention rececntly of the UK asking whether money coming from Thailand had been subjected to taxation there?

[papillon 695]

Unless the donor dies within 7 years, then there are possible Inheritance tax implications.

Seems like banks are sticking their noses in more and more often these day using 'money laundering' as an excuse.

That and the fact the Government seem to have developed a bit of authority over the banks and everyone is a tax inspector. Wasn't there some mention rececntly of the UK asking whether money coming from Thailand had been subjected to taxation there?

Money coming from Thailand?

 

Never heard of that before, LOL.

[jacko 8,822]

Money coming from Thailand?

 

Never heard of that before, LOL.

Some are taking the opportunity since the rate is very beneficial.

Every now and again, someone will have to move back there.

[papillon 695]

Some are taking the opportunity since the rate is very beneficial.

Every now and again, someone will have to move back there.

 

Can you elaborate a little?

[jacko 8,822]

Can you elaborate a little?

The exchange rate has persuaded a few UK people to repatriate money now, perhaps from the sale of a condo or such.

There is still an underlying preference by many to have their money in the UK.

 

And some decide to go home and have to sell up,

[stoace 207]

The bank have no responsibility to deduct tax EVEN if there were any payable on a deposit.

 

If the cheque was made out from a foreign account there very well may have been fee's associated with a deposit but almost certainly NO tax.

[tomcat76 327]

Good to know there's somebody competing with the US for generosity towards immigrants... (oh, wait a minute; AP says they can't be called "illegals" or "illegal immigrants" anymore... I meant, generosity towards undocumented democrats...

[yogi100 1,925]

The exchange rate has persuaded a few UK people to repatriate money now, perhaps from the sale of a condo or such.

There is still an underlying preference by many to have their money in the UK.

 

And some decide to go home and have to sell up,

 

 

There was no condo sale, no tax issues, no 'money laundering' malarkey and no preferential interest reasons. It was simply a case of an elderly man sending his three kids (adult offspring) 10,000 GBPs a piece because he wanted to, nothing more, nothing less. He has UK bank accounts into which his pensions are paid and it was a straight forward gift in the form of a UK bank cheque being presented for payment into another UK bank account in the UK.

 

Thanks for the input and it seems the clerk was simply informing the daughter that there COULD be an inheritance tax implication should she deposit her Dad's cheque.But since his estate is well below the limit (325,000 GBPs) no Inheritance tax issues will arise. But his daughter like many UK citizens is wary of the fact that our govt is introducing new ways of fleecing us all the time and their 'if it exists tax it' policies.

[jacko 8,822]

There was no condo sale, no tax issues, no 'money laundering' malarkey and no preferential interest reasons. It was simply a case of an elderly man sending his three kids (adult offspring) 10,000 GBPs a piece because he wanted to, nothing more, nothing less. He has UK bank accounts into which his pensions are paid and it was a straight forward gift in the form of a UK bank cheque being presented for payment into another UK bank account in the UK.

 

Thanks for the input and it seems the clerk was simply informing the daughter that there COULD be an inheritance tax implication should she deposit her Dad's cheque.But since his estate is well below the limit (325,000 GBPs) no Inheritance tax issues will arise. But his daughter like many UK citizens is wary of the fact that our govt is introducing new ways of fleecing us all the time and their 'if it exists tax it' policies.

I was answering a question from Pappy, which I quoted.

 

An interesting development at the bank might be that you cannot en-cash the cheque for 7 years, to ensure it does not become part of an inheritance!

Who knows what they might dream up next.

[stoace 207]

A friend of mine has just told me he has had the same issue, apparently there is a gift tax which has existed for a long time however HMRC havent been that focused on applying it, obviously now we owe a fortune ALL the taxes are being applied and the banks are duty bound to report it. Typically it only applies to personal payments of 10k and up so 2 cheques of 5k each will be fine if deposited seperately.

 

Spread the word.....

[atlas2 4,329]

Just noticed the apt 'subtitle'to this post.

 

Some say the term, 'Daylight Robbery' comes from a tax in Britain on windows.

Edited May 1, 2013 by atlas2

[ZARIS 20]

This is a new one on me.

 

My pal lives in Pattaya and is reasonably financially secure. He decided to send his three adult offspring back in the UK 10,000 GBPs a piece. He has his state pension and a local authority pension and some savings.

 

He sent the three cheques off and soon received a phone call from his daughter who had taken her cheque into her bank to deposit it. She was informed that deposits over 3,000 pounds were now subject to a tax. This is possibly because the sum was a gift, she did not clarify the reason nor did she tarry to find out how much the tax would be, she simply walked out with the cheque in disgust.

 

She is sending the cheque back to her father as she resents contributing to the legions of freeloaders now resident in the UK.

 

Any Brits heard of this latest rip off?

western democracies are run by people who seem hell bent on taking every last cent from the successful and giving it to the indolent and foreign.

[bigdelta 46]

I 1st saw the term "undocumented democrats" 2 weeks ago.Both funny & sad,but true.Let's give them a path to citizenship.......all 11 million of them!From the clown in the White House.

Good to know there's somebody competing with the US for generosity towards immigrants... (oh, wait a minute; AP says they can't be called "illegals" or "illegal immigrants" anymore... I meant, generosity towards undocumented democrats...

Edited May 1, 2013 by bigdelta

[bigdelta 46]

By "western democracies" you mean the clown in the White House (again)?

western democracies are run by people who seem hell bent on taking every last cent from the successful and giving it to the indolent and foreign.

Edited May 1, 2013 by bigdelta

[bigdelta 46]

I think we give that much every month to them for harboring terrorists.

"Under plans unveiled by David Cameron, Pakistan will get upto £446m of taxpayers cash by 2014" Reported in many UK papers yesterday. For education and health.