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

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.

Have relatives or friends living in Canada? From time to time, you might want to send them some money as a gift. It might be to celebrate a birthday, anniversary or graduation, or for a specific purpose such as to put towards a new car or a deposit on a home.

Whatever the reason for your generosity, you’ll need to know how to send a money gift to Canada from the UK. One of the most important factors is how much you can send, as some limits may apply.

In this guide, we’ll look at UK and Canada tax laws and other rules on money transfers, as well as bank limits and other considerations. We’ll also show you how to set up your payment using a bank or an alternative provider such as Wise.

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How much money can you send to Canada from the UK?

There’s technically no legal limit on how much you can send in an electronic transfer between the UK and Canada. Neither country has specific laws limiting international transfers to a certain amount.

However, there are a handful of things you need to bear in mind:

Extra anti-fraud checks for large transfers

Firstly, it’s useful to know that official UK bodies like the Financial Conduct Authority (FCA), and HM Revenue & Customs (HMRC) do monitor international money transfers to check for illegal activity such as fraud and money laundering.

If you’re sending a large amount to Canada or any other country - around £10,000 or more - you may be asked by your bank or money transfer provider to provide a few more details. These are usually to do with the reason you’re sending the money and the source of the funds (i.e. regular income, inheritance or the proceeds from a property sale).

Usually you’ll just have to follow the service provider’s process, and everything will be in order.

If the FCA or HMRC have any concerns about transfers they're informed of - about money laundering or tax avoidance for example - they can investigate further, which may lead to civil or criminal action if the transfer is found to break the law.

Bank or provider transfer limits

One of the main factors that may limit the amount of money you can send to your Canadian relative is actually your UK bank or transfer provider.

Both tend to have upper limits on how much you can send in one go, or per day - and separate limits may apply to international transfers.

For example, UK banks tend to have international transfer limits of around £25,000 to £50,000. It depends on the bank, and also the account - for example, HSBC customers with a Premier account can send up to £10 million.¹

You may also be able to send more with a specialist online money transfer service. For example, with Wise you can send up to £1 million, or up to £20 million if sending from a currency in your account.

Banks in Canada may also have their own limits on receiving money.

📚 Wise transfer limits guide

Posting money to Canada

In the unlikely event that you’ll be sending money through the post or by courier to Canada, there’s an extra thing you need to know about.

If you’re sending the equivalent of $10,000 CAD or more, you’ll need to complete an E667 form and include it in the envelope or package. You also need to attach a Universal Postal Convention (UPC) declaration to the parcel.² This is required as part of the rules for taking cash into Canada, as larger sums need to be declared to customs authorities.

However, sending cash by post or courier is definitely not recommended for security reasons. It’s usually much safer (and quicker) to send an electronic transfer.

Will I be taxed in the UK if I send money to Canada as a gift?

You might be taxed in the UK under inheritance tax (IHT) laws when you send money abroad, depending how much you send along with other circumstances.

Here’s what you need to know:³

• Each UK tax resident can give £3,000 worth of gifts each tax year without them being added to the value of their estate for inheritance tax purposes
• There’s also a small gift allowance of £250 - you can give as many gifts of up to £250 per person as you want within the tax year, provided you’ve not already used up your allowance on that person
• Birthday and Christmas gifts given from regular income are also exempt from tax
• You can give up to £5,000 tax free to a child who is getting married or starting a civil partnership
• You can give an unlimited amount of regular payments to help someone with living costs.

How to send money to Canada from the UK

Now, let’s take a look at how to actually send your transfer.

You can choose between banks and money transfer providers - just make sure to compare fees, exchange rates and transfer times carefully. You should also check out the security features, and only use a regulated, legitimate and trusted provider.

Details needed to send an international transfer

Here’s what you’ll need:

• The recipient’s full name and address
• Their bank account number and Canadian Routing Number (also known as a branch code). This is what banks in Canada use in place of the sort code we use in the UK.
• Their bank’s BIC or SWIFT number.

How to send money to Canada as a gift - step-by-step

The exact process for sending an international transfer will depend on the bank or provider. But generally speaking, it works like this:

1. Get your recipient’s details together
2. Check the fees and exchange rates - if you’re using an online money transfer provider, you should be able to see these clearly before you send. It can be trickier with a bank, so you may need to check the fee information document for your account or contact the bank directly.
3. Sign up for an account (if using a money transfer provider)
4. Using online banking or a money transfer website, enter the details for your transfer. This includes the amount, currency, date you’d like to send and the recipient details.
5. Double-check that you’re happy with everything, including the fees
6. Confirm your transfer
7. You may receive a tracking number or other way to track the transfer as it makes its way to Canada.

Use Wise for fast, safe and cost-effective transfers from the UK to Canada

Banks can sometimes be slow and expensive when it comes to sending money overseas, so you might want to look for a better solution for sending your cash gift over to Canada.

Open a Wise account and you can send money to Canada and worldwide for low, transparent fees and mid-market exchange rates. Payments are fast, secure and reliable, and you can even track them along the way using the handy Wise app.

There's even a dedicated secure service for large payments.

Both you and your recipient can make use of Wise to hold 40+ currencies all in one place, converting between them whenever you need to.

Send money internationally with Wise to 140+ countries in 45+ currencies. You’ll only pay small, transparent fees* and get the mid-market exchange rate without a markup.

➡️ Sign up with Wise for free

Sources used:

1. HSBC - Premier account transfer limit to Canada/small>
2. Government of Canada - requirements for posting money to Canada/small>
3. GOV.UK - Inheritance Tax thresholds, rules and allowances/small>