How much money can I receive as a gift from abroad? UK guide

Disclaimer: The contents of this article is for informational purposes only and does not constitute legal or tax advice. Decisions related to tax should be made after thorough research, consultation and verification from a qualified financial and legal advisor.

Expecting a cash gift from abroad? Whether it’s for a birthday, a special occasion or simply a generous gesture, you might be wondering if there are any rules around how much you’re allowed to receive.

In this guide, we’ll answer the question: How much money can I receive as a gift from overseas in the UK? We’ll also explain the potential tax implications of receiving cash gifts.

If you’re looking for a reliable and cost-effective way to receive money from abroad, consider using Wise. With low, transparent fees*, mid-market exchange rates, and secure, trackable transfers, Wise makes international money transfers simple.

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How much money can I receive as a gift from overseas in the UK?

When someone sends you a gift from abroad, it may be subject to Customs Duty, Excise Duty and Import VAT. Import VAT applies to gifts valued over £39, while Customs Duty is charged on gifts worth more than £135.¹

When it comes to receiving cash gifts from overseas, cash is treated as a gift so again can be subject to tax. One exemption is cash gifts from parents living abroad which are often exempted from UK inheritance and income tax.² You can receive monetary gifts without tax provided your parents live outside the UK and the money is from their fund.

However, your bank or money transfer provider might impose their own limits or require additional documentation, so it’s worth checking with them in advance.²

It’s also worth consulting a UK tax adviser or a solicitor, especially if you expect to receive a large sum of money. Keep in mind that the sender’s country may have its own rules or taxes that apply to international cash gifts.

In addition to this, it’s also important to keep clear records of any cash gifts you receive, in case questions arise in the future.

How much money can you receive from overseas without paying taxes in the UK?

In general, UK residents need to pay tax on money received from abroad. This covers income such as wages, pensions, rentals and foreign investments from overseas, but does not include cash gifts.³

There are some exceptions depending on the circumstances. For example, if you’ve received gifts from someone who passed away within the last seven years, those gifts may be subject to Inheritance Tax (IHT).⁴

Whether Inheritance Tax is due depends on the total value of the gifts and your relationship with the deceased. If the value of gifts made by the deceased within seven years of their death exceeds £325,000, Inheritance Tax may be payable.⁴

You don’t need to pay tax on a cash gift itself, as long as it doesn't generate any income. However, if you deposit the money into a bank or a building society account and it starts earning interest, that interest may be subject to income tax. You’ll need to report it to HMRC if your total saving interest exceeds your Personal Savings Allowance (PSA).⁵

It’s also important to check whether any tax rules apply in the country from which you’re receiving the money. Some countries may have their own taxes on gifts and the sender could be responsible for reporting or paying tax under their local laws.

How to receive money from abroad

If you’re expecting to receive money from overseas, you’ll need to agree on a payment method and provide your account details to the sender. If there are any fees involved, be sure to decide in advance who will be responsible for covering them.

For a bank transfer, you’ll typically need to provide your full name, account number and your bank’s SWIFT code. Either an IBAN or a sort code will also be required. Check with your bank to confirm exactly what information you need.

Receiving money from abroad through Wise

You could also receive money through Wise, which offers a much simpler process. If the sender is also a Wise user, you can simply give them your Wisetag without needing to share any other account details.

You can find your Wisetag by tapping Payments, then Payment tools on the Wise app or on the official website. It’s indicated by an @ symbol, followed by your name and a number. You can either share a link to your Wisetag or download a QR code to give to the sender.

With Wise, you can send up to £1 million in one single transaction. This limit can be increased to £20 million per transaction by transferring from your Wise account.

Wise – A low-cost alternative to bank transfers

Looking for a secure, low-cost way to receive money from abroad? With a Wise account, you can receive payments in 8+ currencies and hold and convert between 40+ currencies all in one place.

You can also get a Wise debit card for a one-time fee of £7, allowing you to spend in 150+ countries on everything from everyday expenses to larger purchases.

Your money is automatically converted to the local currency at the mid-market exchange rate whenever you spend. You’ll just pay a small conversion fee*, or no fee if you already have the currency in your Wise account.

In addition, Wise’s Split Bill feature can help you manage shared finances with your friends and family in a simple and transparent way. You can divide expenses through a payment request or link, with both Wise users and those who haven’t yet opened an account.

🔎 Learn more about Wise

Sources used:

1. Gov.uk - duties and import VAT on gifts
2. XACT+ Accountants - cash gift rules from abroad
3. Gov.uk - tax on foreign income
4. Gov.uk - how Inheritance Tax works
5. Gov.uk - tax on savings interest

Sources last checked on date: 11-Nov-2025