How to send money from India to the UK as a gift

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.

The UK has a large Indian population so naturally, the diaspora here have close connections to family and friends living back home. These ties are financial as well as emotional, resulting in lots of payments being sent back and forth between the UK and India.

But what’s the best way to send money from India to the UK? If you want to send a graduation gift to a relative who just graduated from Cambridge, support your child as they buy their first home in London or just send a nice surprise on their birthday - we’re here to help.

Read on for helpful info on gift remittance rules in India (and tax rules in the UK), along with tips for the best, fastest and cheapest way to send your payment.

This includes Wise, which lets you send money between India and the UK for low fees* and mid-market exchange rates - in just a few clicks. Wise have recently launched the linked Wise Travel Money Card in India too, so now you and your family in India can benefit from spending in 40+ currencies across 160+ countries worldwide.

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Are there any rules on sending money gifts to the UK?

Before you can even think about sending your cash gift to a loved one in the UK, you need to check the rules - both in India and in the UK.

Both countries have some rules about how much you can send and receive as money gifts, especially in relation to tax.

Gift remittance rules in India

The Reserve Bank of India (RBI) has some rules on how much residents can send abroad for reasons such as gifts (as well as to support education, medical treatment and investments).

It has something called the Liberalized Remittance Scheme (LRS), which sets limits for tax-free transfers abroad.

The main thing you need to know about this is that there’s an overall tax-free limit of $250,000 USD (around £187,236 GBP or 22,567,137 INR) per year. This is the financial year, which runs from April to March.¹

You can send one large cash gift or several smaller ones, to multiple people if you want. But the total you send must be under this $250,000 USD limit.¹

Tax rules in India can be a little complicated though, so it’s best to get some professional advice if you’re unsure where you stand.

Tax rules in the UK

The UK also has some rules on receiving cash gifts, but they only apply if the sender is a UK resident for tax purposes. So, for example, if you’re ordinarily a UK resident but are spending a couple of months in India - and during this time, you send your cash gift.

The rules in the UK are related to inheritance tax (IHT). The money won’t be taxed unless the sender (a UK resident for tax purposes) dies within 7 years - in this case, it may be included in their estate and taxed under IHT rules.²

There are also some tax-free limits on sending cash gifts, which you can take a look at here on the UK Government’s website. But again, they only apply if the sender is a UK resident for tax purposes. If not, then India’s rules will apply.

What’s the best way of sending money from India to the UK as a gift?

If you’re happy with the tax situation, it’s time to work out the best way to send your transfer.

You have two main options - you can use your bank in India, or you can use an online money transfer (remittance) service.

Banks are a secure, trusted and familiar way of sending money abroad, but they can be slow and expensive. Transfers typically take between 1 to 5 days to arrive, if sent via the SWIFT network.

You’ll usually pay a transfer fee, along with currency conversion costs - it’s also worth knowing that banks usually add a mark-up to the exchange rate. This can make the transfer more expensive, or mean your recipient receives less on the other end.

Money transfer services are usually quicker, easier to use and more transparent about fees.

For example, if you send a transfer from India to the UK with Wise, you’ll see the fee and exchange rate upfront. Transfers typically take 1-2 working days, and there’s no mark-up on the exchange rate. You can open an account and set up your transfer online, with just a few clicks.

Transfers with Wise are secure and trackable, so you know your money will arrive safely.

📚 Send gift money to friends and family

What details will I need to send money to the UK from India?

If you’re ready to send your cash gift, you’ll need to get hold of your recipient's details.

Here are the details you’ll need from your relative or friend living in the UK:

• Full name
• Bank name and address
• UK account number and sort code, or International Bank Account Number (IBAN)
• Their bank’s BIC/SWIFT code.

For LRS compliance, you may also need the following documents when setting up your payment with an Indian bank or other provider:³

• Valid passport
• Permanent Account Number (PAN) card
• Gift declaration letter
• Proof of relationship to the recipient (if required).

Your bank should advise you further on what details and documents are needed to make sure your gift is categorised as a compliant outward remittance.

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

Banks can 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.

If you’re in India you can get the Wise Travel Money Card which lets you spend in 160+ countries. This offers easy, low-cost spending if you regularly travel to the UK from India.

When in the UK, it automatically converts your rupees to British pounds whenever you spend - so you don’t have to worry about changing money or finding the best exchange rate. You’ll get it automatically with Wise.

If you’re based in the UK, you can open a Wise account - to hold and send money 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.

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.

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After reading this, you should have all the info you need to send your cash gift from India to the UK - whether it’s sending your nephew a birthday present, sending a graduation gift or helping your daughter out with buying her first car.

It’s worth taking a little time to check up on the tax rules and find the right provider for your transfer, as it could save you money in the long run.

Sources used:

1. MoneyHOP - LRS limits and rules
2. GOV.UK - Inheritance Tax thresholds, rules and allowances
3. MoneyHOP - documents needed

Sources last checked: 18-Dec-2025