How much gift money can be sent to the UK from India?

Under the RBI’s Liberalised Remittances scheme, individuals in India can transfer up to USD 250,000 or its equivalent of 196,250 GBP ( British Pounds Sterling) in a forward year. This is the maximum limit. If you are planning to avoid 20%TCS (Tax collected at the Source) keep remittance below INR 7 lakhs.

How much gift money can I send to my parents or spouse in the UK tax-free?

An Indian resident can send gift money up to INR 7 lakhs without incurring any tax liability. However, for amounts exceeding 7 lakhs, a 20% Tax Collected at Source (TCS) will be applicable.

What is the cheapest way to transfer gift money from India to the UK?

When considering factors such as fees, exchange rates, and delivery speed, online money transfer services are the preferred choice over traditional bank transfers or checks. Take, for example, moneyHOP, which offers a competitive flat fee of just INR 200 along with near-zero markup forex rates for international payments. In contrast, bank transfers often come with processing fees starting at INR 500, and when combined with exchange rates, the overall cost tends to be higher.

How much will it cost to send gift money to the UK?

When choosing online money transfer services such as moneyHOP, you’ll only incur a competitive flat fee of INR 200 plus near-zero markup forex rates. Additionally, by ensuring that your annual overseas remittance stays below INR 7 lakhs, you can also avoid TCS (tax collected at source).

What are the best ways to send money to the UK?

Below are popular methods by which you can send gift money to any person residing in the UK. Online Money Transfer Services – Fast and cost-effective, with competitive exchange rates and typically taking 12-48 hours to reach the recipient. Bank Transfers – Relatively fast (usually take 2-3 business days) and levy higher fees. Prepaid Cards – Load INR onto a multi-currency card for easy spending in the designated country. Cheque: Possible but slow and may involve additional bank fees.

How can I send money as a gift to the UK?

Step 1: Sign up at moneyHOP using your email address and password if you are a first-time user. If you are already a member, simply login to the platform. Step 2: Select the currency and the amount that you want to exchange. Step 3: Upload your KYC documents online (only for the first time user) Step 4: Add or select the recipient’s account details Step 5: Make the payment online and that’s it!

How much money can I send as a gift from India to the UK without tax?

You can send up to USD 250,000 annually under LRS. However, a 20% TCS applies for gifts exceeding ₹10 lakh per year.

Is gift money taxable in the UK?

Gift money received in the UK is generally not taxable unless it involves inheritance or estate planning issues.

Can I transfer money from India to the UK without charges?

While banks have fees, platforms like HOP Remit offer low or negligible charges.

What documents are needed for gift remittance?

You will need your passport, PAN card, a Gift Letter, and the beneficiary’s bank account details.

What is the cheapest way to remit gift money to the UK?

Using specialized money transfer platforms like HOP Remit offers the most affordable solution.

Category – Finance

How to Remit Gift Money to the UK from India (2025 Guide)

Updated On:

Mar 4, 2025

Karthik

Sending money as a gift is never just about the transfer. It could be helping a daughter settle in London, celebrating a sibling’s success abroad, or simply staying connected with family oceans away. Figuring out how to remit gift money to the UK from India today means more than a transaction. It’s about making sure your love and support arrive safely, affordably, and on time.

Why India-to-UK Remittances Are Growing?

With over 1.9 million people of Indian origin living across cities like London, Leicester, Birmingham, and Manchester, the financial connection between India and the UK runs deep. Families routinely send gifts and support, strengthening ties beyond borders. As remittances become more common for special occasions, education, or support, understanding how to remit gift money to the UK from India is now a necessary part of staying close, even from afar.

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Best Ways to Remit Gift Money from India to the UK

1. Bank Wire Transfers

Bank wire transfers remain a traditional choice for international money transfers. Most Indian banks facilitate these services, although processing times can range between 3-5 working days. While secure, banks often charge higher fees and offer less competitive exchange rates.

When to use: High-value, formal transfers where banking documentation is important.

2. Money Transfer Companies (e.g., HOP Remit)

Digital-first platforms like HOP Remit by moneyHOP specialize in international gift money transfers. They offer better exchange rates, lower charges, and faster delivery—usually within 24-48 hours.

Why choose this: Speed, low fees, full transparency, and a user-friendly digital experience.

3. Forex Cards

Another method is to preload a forex card for a family member to use abroad. This is convenient for everyday expenses but involves card charges and possible currency conversion fees.

When to use: Ideal for students and travelers who will spend incrementally.

4. Demand Drafts

Demand drafts are bank-issued documents that beneficiaries can encash abroad. However, they are slow and less practical in today’s fast-paced world.

When to use: Legal settlements or documentation-heavy transfers.

5. Gift Cards

For smaller gifts, you can send e-gift cards redeemable at UK stores. They’re not suited for cash needs or large sums but perfect for birthdays or holidays.

When to use: Gifting experiences or items rather than cash.

Choosing the best method for how to remit gift money to the UK from India can maximize your savings and speed.

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Quick Comparison: Methods to Send Gift Money

Method	Speed	Cost	Ideal For
HOP Remit	24-48 hours	Low	Most situations
Bank Wire Transfers	3-5 business days	Moderate to High	Large sums
Forex Cards	Immediate	Moderate	Small daily expenses
Demand Drafts	7-10 days	Low (but slow)	Legal/formal gifting
Gift Cards	Instant	Low	Occasional gift giving

Real-Life Example: Saving with HOP Remit

For instance, Mr. Sharma from Mumbai wanted to gift ₹5 lakh to his daughter’s wedding in Manchester. Mr. Sharma’s story highlights how crucial it is to know how to remit gift money to the UK from India using trusted services. By choosing HOP Remit instead of a traditional bank, he saved over ₹4,500 in transfer fees and got a better exchange rate, ensuring his gift had a bigger impact without extra costs.

TCS on Remitting Gift Money

Navigating tax laws is critical when considering how to remit gift money to the UK from India. Here’s the current TCS (Tax Collected at Source) structure:

Purpose	TCS Rate
Education via Loan	0% (No TCS)
Education (Self-funded)	5% over ₹10 lakh/year
Medical Treatment	5% over ₹10 lakh/year
Overseas Tour Packages	5% up to ₹10 lakh; 20% beyond
Gifts, Investments, Others	20% over ₹10 lakh/year

Under the Liberalized Remittance Scheme (LRS), you can remit up to USD 250,000 per financial year.

TCS applies even if you’re sending money to close relatives.

Refund of TCS on international remittance

Required Documents for Remittance

Gathering the right documents is an important step when you plan how to remit gift money to the UK from India. Make sure you have these essentials ready:

Passport (valid)

PAN Card (mandatory for tax compliance)

Gift Letter (declaring purpose as “gift”)

Beneficiary’s UK bank account details

Proof of relationship (optional but advisable)

Tip: Services like HOP Remit simplify digital document submission, making the process faster.

Here’s a quick checklist to make your remittance smooth and hassle-free:

Why Choose HOP Remit for Sending Gift Money?

When you are exploring how to remit gift money to the UK from India, choosing the right platform can make all the difference. HOP Remit offers:

Best Exchange Rates: Updated frequently to match or beat market rates.

Zero Hidden Fees: What you see is exactly what you pay.

Speed: Most transfers complete within 24-48 hours.

24/7 Service: Initiate transactions anytime.

Rate Lock: Secure your desired exchange rate for up to 24 hours.

Compliance: RBI-approved and fully LRS-compliant.

Benefits of using HOP Remit for students and families

5 Steps to Remit Gift Money with HOP Remit

Create Your Account: Quick signup with email and mobile number.

Enter Transfer Details: Choose the amount, purpose, and beneficiary.

Complete KYC: Upload ID proof and address proof.

Add Beneficiary Details: Include the recipient’s full bank information.

Pay and Transfer: Use net banking, UPI, or card payments to initiate the transfer.

Close Relatives Definition

While planning how to remit gift money to the UK from India, it’s easy to overlook simple yet costly mistakes:

Husband and Wife

Parents (including step-parents)

Son and Son’s Wife

Daughter and Daughter’s Husband

Brother and Sister (including step-siblings)

Sending gift money to these categories is considered genuine and easier for compliance.

Check the live exchange rates here

Common Mistakes to Avoid

Choosing services with poor transparency.

Ignoring TCS implications for gifts over ₹10 lakh.

Sending cash via postal services (high risk).

Not locking in a favorable exchange rate.

Skipping important documentation.

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Summing Up

Sending gift money internationally should be simple, cost-effective, and stress-free. With this complete guide on how to remit gift money to the UK from India, you are now equipped to make informed decisions, avoid hidden charges, and stay compliant with tax regulations. Platforms like HOP Remit make the experience smoother by offering competitive rates, transparency, and lightning-fast transfers.

Start sending your love and support today, and experience the easiest, safest way to send gift money abroad.