Sending money as a gift from the EU to UK (2025 tax & transfer guide)

Disclaimer: The contents of this article is for informational purposes only and does not constitute legal or tax advice. You are solely responsible for calculating your tax liabilities and paying them as per the applicable law. If you need any assistance to determine and pay the same please consult a qualified financial and legal advisor.

Living in the EU, but have family and friends back in the UK? Sending money as a gift for a birthday or special occasion is a thoughtful way to stay connected.

You might want to make regular payments too, like paying your parent’s assisted living or helping out with your kid’s rent. Either way, you may be wondering about the costs, limits and tax implications — especially post-Brexit.

This guide explains three popular ways to send money as a gift from the EU to the UK: online money transfer services, international bank transfers, and specialist foreign exchange brokers. It covers the pros and cons of each option, as well as important limits and rules to be aware of.

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How to send money from the EU to the UK: Three main options

Here’s an overview of common ways to send money from the EU to the UK.

Online money transfer services

This may be the cheapest and quickest way to send money as a gift for family and friends abroad. It involves transferring money from your EU account to the recipient’s UK account, converting it from euros to pounds in the process. Popular providers include Wise, Instarem and Remitly.

Pros

• Competitive exchange rates and fees, especially compared to banks
• Can be quicker for smaller amounts like €50 to €500. For example, in Q2 2025, 70% of Wise transfers arrived in under 20 seconds
• Easy to use via website or app
• Some services (including Wise) allow you to set up rate alerts and auto conversions.

Cons

• Some providers advertise low fees but bump up the exchange rate as a hidden way of charging you more
• Some providers may not support your preferred payment method, such as cash, crypto and certain debit or credit cards.

Note: Transaction speed claimed depends on individual circumstances and may not be available for all transactions. See latest speed update for more details.

High street banks or traditional bank transfers

Another option is to send money directly from your EU bank account to your recipient’s UK bank account for which the bank may be using a SWIFT transfer. SWIFT is a secure network that allows financial organisations in different countries to arrange international money transfers.

Pros

• You can do it all through your usual bank, which feels familiar
• Banks are heavily regulated, meaning your money should be well protected.

Cons

• It’s expensive — banks may charge high fees and exchange rate markups.
• Transfers may take several days, which may be slower than online money transfer services
• Some banks may be charging extra fees to transfer euros between the UK and SEPA countries as Brexit has made the process more complicated for them.¹

Specialist foreign exchange (FX) brokers

FX brokers specialise in larger transfers, often thousands of euros or more. They often provide insight into market trends, helping you navigate currency fluctuations and secure a good exchange rate.

Pros

• Competitive exchange rates for large amounts
• Often have dedicated account managers to help you
• Allow you to lock in a current exchange rate for a future date.²

Cons

• Typically expensive or unavailable for small gifts
• Can be less convenient than an app-based service
• Fees and services vary so you’ll need to compare offers carefully.

Understanding UK tax rules for cash gifts

For many people sending money as a gift, there’s no UK tax to worry about. But it’s still worth knowing the rules so you don’t get caught out.

Does your recipient in the UK pay income tax on the gift?

No. Cash gifts aren’t classed as income in the UK, so your friend or family member won’t pay income tax on the money they receive. One thing to be aware of is Inheritance Tax (IHT), which is explained below.

The 7-Year rule and Inheritance Tax (IHT) explained

Money you give as a gift may be counted for Inheritance Tax if you die within 7 years of giving it. When you die, your estate is handled by a personal representative (called an executor if you’ve left a will). They’ll decide if tax is due on your gift, which must be paid by the person who received it.³

There’s no Inheritance Tax on:

• Gifts between spouses or civil partners, or to charities or political parties.
• Regular payments to support someone, like covering your child’s rent.
• Christmas or birthday presents paid for with your regular income.

You can also give tax-free gifts of:

• Up to £3,000 total each tax year.
• Up to £250 per person to as many people as you like.
• Up to £1,000 as a wedding or civil partnership gift (this limit rises to £5,000 if it’s for your child or £2,500 for your grandchild.)⁴

If you’re transferring large amounts or want someone to receive an inheritance from abroad, it’s smart to get professional advice about the tax implications.

Is there a limit on how much money I can send?

Transfer services and banks have their own limits on how much money you can send as a gift from the EU to the UK. This helps them comply with anti-money laundering rules. For example, you’re allowed up to 20 million EUR per transfer when you send euros from your Wise account, with lower limits if you pay by card, iDEAL or Trustly.

What about tax in the EU country I live in?

Some European countries apply their own gift tax when you send money as a gift from the EU to the UK, especially for larger transfers. It’s best to check the rules locally, either through your tax authority’s website or by speaking to an adviser.

Checklist before you send money from the EU to the UK

Before you hit send, here are some quick steps to save time and hassle:

• Compare money transfer providers and beware of sneaky hidden fees and rate markups
• Consider your timing, as exchange rates change daily. Wise allows you to set up rate alerts and auto conversions
• Have your recipient’s details ready, like their full name and account details
• Check your provider’s transfer limits before sending a large amount
• Check any tax rules in your country of residence, especially Inheritance Tax if you’re sending a larger amount

Ready to send? Get started with Wise

There are several ways to send money as a gift from the EU to the UK — whether you’re transferring money internationally as a wedding gift, sending a graduation present abroad, or making regular payments to someone back home. In most cases, online transfer services strike the best balance of cost, speed and convenience.

Wise helps customers move over £36 billion every quarter worldwide. Open a Wise account in minutes for access to mid-market rates, low transparent fees* and lightning-fast transfers.

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Note: Transaction speed claimed depends on individual circumstances and may not be available for all transactions. See latest speed update for more details.

Sources used in this article:

1. Stripe - SEPA and Brexit
2. OFX - locking in exchange rates for future transactions
3. UK Parliament - 7 year rule
4. Gov.uk - inheritance tax

Last checked on 14 September 2025