Can non resident buy a car as a gift in uk? - Will Marshall

A relative of my wife who is not a uk resident or citizen wants to gift her a car. Would my wife be liable for any income tax on the gift.?

What is the best way to go about it?

Presumably the relative pays the dealer directly for the vehicle via some form of currency transfer (I don't know how this works) and the registration and insurance are made out in my wife's name. How is legal ownership transferred? By written consent or "sale" to my wife for £1 etc.

Edited by Will Marshall on 24/08/2011 at 00:12

Can non resident buy a car as a gift in uk? - oldroverboy

Yes , your relative is not here they can pay for the car,It requires someone to go and order the car, pay a deposit agreed with the dealer, and the rest can be paid by bank transfer, but note that not everyone would accept this, the problems now come from some banks refusing to honour transfers which are then withdrawn, HJ deals with these issues in his advice section.

In geneva we had a client from Germany (who was british) (smell any rats here?) order a range rover tax-free, perfectly legal, but who was surprised when we would not release the car to him until the transfer had fully cleared.

The easiest way is if your relative gives your wife the money and she then pays for the car, easy! If your relative is here they can go with your wife but if they pay in cash the dealer might want to see someones id, regarding money laundering laws, but I have often paid in cash, and a photo driving licence or passport is usually good. If in doubt ask the garage!

Problems arise when handing over goods, bec ownership is transferred, then becomes civil matter not criminal, because of all the people who do try it on! Maybe someone knows better, but we NEVER released a car before complete payment, be it purchase or repairs.

Edited by OldRoverboy on 24/08/2011 at 21:42

Can non resident buy a car as a gift in uk? - Will Marshall
Thanks for the detailed response, I understand your concerns.

However, my conviction is that I have more to watch out from the motor trade than vice-versa. lol

Upon reflection I think you right, a gift of money is the easiest method. As far as we can ascertain it doesn't raise a tax issue for the recipient, only for the giver and their inheritance tax limit. It varies from country to country.