How can a Ukrainian send via a bank wire a loan of 5000 GBP to UK citizen without income tax?
Personal loan? Gift?
Last edited: Feb 15, 2023
Personal loan? Gift?
Last edited: Feb 15, 2023
How can a Ukrainian send 5000 GBP to UK citizen without income tax?
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will this imply paying income tax? Are loans and/or gifts exempt? If a sender is a foreigner?
income tax is payable on income. Is this payment income, loan or a gift? If you are asking how to misclassify a payment so that tax is not payable when it is due, then that is tax evasion and is illegal.
Edit: Regardless of the purpose of the payment, the method would remain the same. A wire transfer.
Where is the UK citizen resident? Are the two people married or family members? What's the purpose of the gift?
As a general rule and if we assume the person is resident in UK, gifts are tax free up to 3,000 per year. IIRC, there is a way to carry over an exemption from the previous year to the next year, meaning you might be able to give up to 6,000 GBP provided no gifts were received by the recipient the previous year.
As always when a question is very specific to a jurisdiction's tax laws, speak with a tax adviser/lawyer if you want certainty.
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This is the probably the answer to your question.
As a general rule and if we assume the person is resident in UK, gifts are tax free up to 3,000 per year. IIRC, there is a way to carry over an exemption from the previous year to the next year, meaning you might be able to give up to 6,000 GBP provided no gifts were received by the recipient the previous year.
As always when a question is very specific to a jurisdiction's tax laws, speak with a tax adviser/lawyer if you want certainty.
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This is the probably the answer to your question.
It's a small amount, I never had any problem in the UK, but you could break it into 2 transfers, and use an intermediary like Wise.com. In the UK I sold a car etc every year for big amounts and never had any questions asked, except from a bank cashier when adding (or taking) big amounts of cash, whom I told that I bought or sold a car.
Make sure you transfer to your personal bank account, not business.
Make sure you transfer to your personal bank account, not business.
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