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 Send Gift Money to the UK from India – Fast, Legal & Low-Cost (2025)

Updated On:

Sep 1, 2025

Karthik

When you send gift money to the UK, it’s not merely a transaction; it’s a gesture of connection. Whether you’re helping your daughter begin her life in London, celebrating a sibling’s achievement, or sending love across continents, the intention is deeply personal.

But the question remains: how do you send gift money to the UK from India in 2025 safely, legally, and cost-effectively?

With evolving RBI rules, tighter TCS thresholds, and newer digital platforms redefining international transfers, understanding the process isn’t just convenient; it’s essential.

This guide simplifies the complex and helps you make every rupee of your gift count.

Why India-UK Gift Remittances Are Rising

The connection between India and the United Kingdom runs deeper than trade or history it’s family. According to the UK Office for National Statistics, over 1.9 million Indians reside in Britain. Many maintain regular financial ties with their families back home.

In the past five years, the RBI’s Liberalized Remittance Scheme (LRS) has seen record participation, with total outward remittances crossing USD 30 billion in FY24. Gifts, family support, and education now represent nearly one-fourth of that total.

Simply put, more Indians are sending money abroad and an increasing number are specifically choosing to send gift money to the UK for emotional and financial reasons.

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Understanding the Legal Framework and RBI Rules

Before initiating any overseas transfer, it’s crucial to know what the RBI permits and how the Tax Collected at Source (TCS) applies.

1. LRS Limit

Under the Liberalized Remittance Scheme, resident Indians can remit up to USD 250,000 (approx. ₹2 crore) per financial year for permissible purposes, including gifts, maintenance of close relatives, and overseas investments.

2. TCS Rules for 2025

The Government of India has implemented 20% TCS on overseas remittances exceeding ₹10 lakh per financial year, except for education or medical transfers, where lower rates apply.

If your total gift transfers exceed ₹10 lakh, your authorized dealer (bank or platform) will collect TCS upfront. You can later claim it as a refund while filing your ITR.

3. Documentation Checklist

To send gift money to the UK from India, keep these ready:

Valid Passport

PAN Card (mandatory for LRS compliance)

Gift Declaration Letter stating the purpose as “gift”

Beneficiary bank details in the UK

Proof of relationship (recommended for audit clarity)

These ensure your transaction is recognized as a compliant outward remittance.

Best Ways to Send Gift Money to the UK

There are multiple ways to send gift money to the UK from India, but not all are equal in speed, cost, or transparency.

Below is a detailed comparison.

Method	Speed	Cost	Ideal For	Comments
Bank Wire Transfer	3-5 working days	Higher fees, weaker rates	Large sums needing documentation	Safe but slow and expensive
Digital Platforms (e.g., HOP Remit)	12-24 hours	Low fees, live rates	Everyday transfers & gifts	Fastest, most transparent method
Forex/Prepaid Cards	Instant once loaded	Moderate	Students & travelers	Good for spending, not for gifting
Demand Drafts	7-10 days	Low, but cumbersome	Legal settlements	Largely outdated
Gift Cards/E-Vouchers	Instant	Minimal	Small occasions	Not for cash needs

For most users, digital-first platforms like HOP Remit by moneyHOP offer the right mix of convenience, compliance, and cost efficiency.

Easy way to send living expenses to UK from India

Case Example: How Choosing the Right Platform Saves Money

Consider Mr. Sharma from Pune. He wanted to send ₹5 lakh to his son studying in Birmingham as a wedding gift.

His bank quoted a 2.5% transfer fee, along with a ₹1.5 poorer exchange rate per GBP.

Instead, he used HOP Remit; the entire transfer was completed within 12 hours, with a flat low fee and a superior GBP rate. The result?

He saved over ₹4,200, and his son received more pounds for the same rupee value.

That is the power of optimizing how you send gift money to the UK.

How Much Gift Money Can You Send to the UK Legally

You can remit up to USD 250,000 per financial year under the RBI’s LRS framework.

Here’s how it works in practice:

Purpose	Annual Limit	TCS Applicability
Education (Loan)	USD 250,000	Nil
Education (Self-funded)	USD 250,000	5% over ₹10 lakh
Medical Treatment	USD 250,000	5% over ₹10 lakh
Gifts & Investments	USD 250,000	20% over ₹10 lakh

Gifts to close relatives (as defined under the Income Tax Act) are exempt from being treated as taxable income for the recipient but the sender must comply with LRS and TCS reporting.

Refund of TCS on international remittance

Step-by-Step Process to Send Gift Money to the UK

Select a remittance provider – compare exchange rates, fees, and delivery times.

Verify compliance with LRS and TCS thresholds.

Upload KYC documents – passport, PAN, and address proof.

Add beneficiary details – full name, bank name, SWIFT/BIC code, and account number.

Declare the purpose as “gift” while transferring.

Initiate the payment through UPI, bank transfer, or card.

Track delivery status – most modern platforms complete within 24-48 hours.

When you send gift money to the UK digitally, the process is smoother, faster, and more transparent than traditional banking routes.

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

Why Choose HOP Remit by moneyHOP

When it comes to international money transfers, speed, compliance, and transparency are non-negotiable. HOP Remit by moneyHOP checks all these boxes.

Here’s why it stands out:

Market-best exchange rates updated in real time.

Zero hidden charges – what you see is what you pay.

Faster delivery, typically within 12-24 hours.

RBI-authorized and LRS-compliant, ensuring every transaction is legitimate.

Digital-first process, no paperwork or branch visits.

24/7 Service: Initiate transactions anytime.

Secure the rate lock feature so you never lose out to market volatility.

When users choose to send gift money to the UK through HOP Remit, they enjoy peace of mind and measurable savings.

With its transparent pricing and intuitive interface, it’s no surprise that HOP Remit has become one of India’s preferred remittance platforms for UK-bound transfers.

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

Using informal or unauthorized channels.

Ignoring TCS implications for gifts exceeding ₹10 lakh.

Failing to declare the correct purpose code.

Overlooking the beneficiary’s bank receiving charges.

Neglecting exchange rate timing, minor delays can impact conversion by hundreds of rupees.

Not locking rates before initiating the transfer.

Avoiding these pitfalls ensures your effort to send gift money to the UK remains cost-effective and stress-free.

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Final Thoughts

Every time you send gift money to the UK, you’re not just transferring funds; you’re extending care across borders. With RBI’s structured framework, transparent platforms like HOP Remit by moneyHOP, and a clear understanding of TCS and LRS rules, you can make that gesture simple, secure, and rewarding.

The smartest senders today are those who treat remittance like a strategy; they compare platforms, time the market, and use digital-first solutions that multiply value.

In 2025, that’s how you send love, securely, one transfer at a time.