Wonderingaloud Posted November 5, 2017 Share Posted November 5, 2017 Hello I have been in Australia for 6 years and my mother in law has downsized her UK property and wants to give her sons (one of which is my husband) some money. The amount is in the region of £10,000. My question is regarding not so much the transfer as we have moved money before, but the ATO and what they are likely to take off in tax, and are there any legal ways to avoid this (in the states don’t they have a one-off type system?) Apologies if this is not the right area to post this question. Thanks Quote Link to comment Share on other sites More sharing options...
NickyNook Posted November 5, 2017 Share Posted November 5, 2017 There's no gift tax on genuine gifts in Australia. Quote Link to comment Share on other sites More sharing options...
KurtH Posted November 11, 2017 Share Posted November 11, 2017 think you need a tax advisor for something as serious as this. However, I think you're in the clear (I am not a tax advisor but I have moved the money from the sale of a house to Australia from the UK.) I think you end up paying the most tax possible under either system when you 'make' money. But the tax systems are the same around primary residences in both countries - the capital gain is tax exempt (so long as the house was your mother in law's primary residence). So there is no tax to pay in either country on the proceeds of the sale as I understand it and your mother in law can gift money to whomever she pleases. When I sold my house and brought the money over, there was no tax to pay. But, ask an accountant! Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted November 13, 2017 Share Posted November 13, 2017 Sorry for the delay. You should consult with your Accountant about this so they can advise you appropriately. See here from the ATO website on gifts: https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Amounts-not-included-as-income/ Also from the site (seems to contradict itself a little): Receiving a gift of money is not considered assessable income. This is because it is not from an income producing activity. To determine whether or not it should be included as assessable income you would have to consider: The motive of the donor How often you receive it If the gift is used to replace income Regards Andy Quote Link to comment Share on other sites More sharing options...
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