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The short answer
Usually no tax is due when you send money to family in Nigeria, but your country of residence may still count the gifts. In the US, gifts to one person above the annual exclusion ($19,000 for 2026) must be reported on Form 709, although tax is rarely payable. In the UK there is no gift tax as such, but gifts can fall into inheritance tax if you die within seven years, unless an exemption such as regular gifts out of income applies. Nigeria does not treat family remittances as taxable income for the recipient.
The Nigerian side
For the family receiving the money, the NGEX diaspora guide hosted by NiDCOM says genuine personal transfers such as family remittances and gifts are not taxable income in Nigeria. Gifts of property are different: Bloomberg Tax notes that under the Nigeria Tax Act 2025 a gift of an asset is treated as a disposal at market value for capital gains purposes. Cash support for school fees, rent or food is the ordinary case and has no Nigerian tax attached.
United States: Form 709
The IRS gift tax FAQ, reviewed in July 2026, sets the annual exclusion at $19,000 per recipient for 2026 ($38,000 for spouses giving jointly). The donor, not the recipient, is responsible for gift tax. You file Form 709 if your gifts to any one person (other than your spouse) exceed the exclusion in the year; the return is due on 15 April of the following year.
- Filing is not paying. Gifts above the exclusion use up your lifetime exemption, which the IRS puts at $15,000,000 for 2026 under Public Law 119-21. Most people never pay gift tax; they only file.
- Tuition and medical bills paid directly are excluded without limit. The Form 709 instructions say tuition must be paid directly to the qualifying educational organisation, which can be a foreign one, and medical payments must go to the care provider. Books, supplies and accommodation are not covered.
- Per person, not per family. $12,000 to your mother and $12,000 to your father in 2026 is two gifts under the exclusion.
United Kingdom: inheritance tax on gifts
GOV.UK explains that most gifts are free of inheritance tax unless you die within seven years of making them. Several exemptions apply immediately:
- an annual exemption of £3,000 per tax year, with one year's unused amount carried forward;
- small gifts of up to £250 per person;
- wedding gifts of up to £5,000 to a child, £2,500 to a grandchild and £1,000 to anyone else;
- normal expenditure out of income: unlimited, if the gifts are regular, come from income and leave you able to keep your usual standard of living. GOV.UK gives financial support for an elderly relative as an example.
For many Nigerians in the UK, monthly support for parents falls squarely in the last exemption, as long as you can show it came from income, not savings. Whether your assets outside the UK are within UK inheritance tax at all depends on your residence history, so long-standing UK residents should assume they are.
Ireland: capital acquisitions tax
Ireland taxes gifts through capital acquisitions tax. Revenue's notes on section 6 of the Capital Acquisitions Tax Consolidation Act say a gift is taxable in full if the person giving it is resident or ordinarily resident in Ireland on the date, or the recipient is; Irish-situated property is always in scope. Because the tax is charged on the recipient, check the thresholds on Revenue's site before large gifts.
Canada
CRA lists most gifts and inheritances among the amounts that are not reported or taxed for the person who receives them. Giving property, rather than cash, can still be a disposal for the giver.
Worked example
Example only. Uche, in Houston, sends his mother $1,500 a month ($18,000 a year) and pays his sister's university fees of $9,000 directly to the university in Nigeria. The monthly support is under the $19,000 exclusion for 2026, and the fees are excluded because they went directly to the institution, so he files no Form 709. If he had sent his sister the $9,000 to pay the fees herself, her total for the year would still be $9,000, under the exclusion, but the direct-payment route keeps it outside the count altogether. See paying fees directly.
What to keep
- A yearly list of gifts by recipient, with dates and amounts.
- For UK regular-gift claims, evidence of your income and that the gifts did not reduce your standard of living.
- Invoices and payment proofs for fees and medical bills paid directly.
- Transfer receipts. See keeping a record of money sent home.
Related reading: money received from family in Nigeria and setting limits on family support.
Loans that turn into gifts
Family money is often described as a loan and later forgiven. The Form 709 instructions note that gift tax can apply when you forgive a debt, and to interest-free or below-market loans. If you lend a sibling money to start a business and later tell them to keep it, the forgiven amount can count as a gift in that year. Write down at the start whether money is a gift or a loan; see loan or gift for a sibling's business.
Where Pryme fits
Sending regular support with Pryme Send gives a dated record of each transfer, and the Personal Assistant can prepare a monthly transfer for you to approve. Statements can be issued as verifiable documents through VerifyDoc.ai, useful evidence for a UK regular-gifts claim.
Questions people ask
Do I pay gift tax on money sent to my parents in Nigeria?
Rarely. In the US you file Form 709 only above $19,000 per person in 2026, and tax is usually covered by the lifetime exemption. In the UK regular gifts from income are exempt.
Is money from abroad taxable for my family in Nigeria?
No. The NGEX guide hosted by NiDCOM says genuine family remittances and gifts are not taxable income.
Are school fees I pay for a sibling a gift?
In the US, tuition paid directly to the school is excluded from gift tax, including foreign schools. Paid to the sibling, it counts towards the $19,000 exclusion.
What is the UK annual gift allowance?
£3,000 per tax year, plus £250 small gifts per person and unlimited regular gifts out of income.
Sources
- IRS: Frequently asked questions on gift taxes · accessed Oct 2026
- IRS: Instructions for Form 709 · accessed Oct 2026
- GOV.UK: Inheritance tax – gifts · accessed Oct 2026
- CRA: Amounts that are not reported or taxed · accessed Oct 2026
- Revenue: Notes for guidance, CATCA 2003 Part 2 · accessed Oct 2026
- NGEX diaspora guide to Nigeria's 2026 tax reforms (hosted by NiDCOM) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.