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Gifting money to non-relative (Germany to UK)

Personal Finance & Money Asked by QuestionPerson00 on March 5, 2021

I am considering helping out someone I know with living expenses in the UK (so it would be gifting money from Germany to UK). This person is not a part of my family. One thing I have to consider is, "what tax implications would this have".

As far as I gathered in Germany the person who receives the money has to pay the tax. And in the UK the Person that gives the money has to pay the tax(?). So who has to pay the tax? And if it is me how do I pay it?

I am also uncertain about the amount of money, that would be tax free and the tax rates, but that is probably something I can figure out myself.

One Answer

In most circumstances in the UK there's no tax for either giving or receiving gifts.

If you were to die within 7 years of a gift and be subject to UK inheritance tax, then there is a small possibility that previous gifts you gave would increase the tax on your estate. However as you are in Germany it's unlikely you would be subject to UK inheritance tax, and in any case the various other exemptions mean there'd probably be no tax anyway.

Correct answer by GS - Apologise to Monica on March 5, 2021

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