Is money received from family abroad taxable?

[simonto]

My wife's family want to give us $250,000 to help us buy a house in the UK. Do we have to declare the money when we receive it and is it taxable?

[kags]

If this is a genuine gift then the receipt of it is not taxable, and you do not have to declare it. If you were to invest it whilst you were waiting for the house purchase to go through, any income generated would however be taxable. I am not familiar with US tax law, there may be some tax implications for your in-laws, but I assume they have checked this out.

[xrayspecs]

Your bank will, as a matter of course, report the crediting of such a large amount of money. You should be as transparent as possible about the money if and when the inland revenue and special branch contact you.