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The short answer
Sending money you have already paid UK tax on to family in Nigeria does not create a new income tax bill for you. HMRC's interest is in where the money came from: if you are UK resident, you normally pay UK tax on foreign income such as rent from a Lagos flat. Large gifts can also matter for inheritance tax if you die within 7 years, so records help.
Income tax: what HMRC taxes
UK income tax is charged on income you receive, such as wages, self-employed profits, savings interest and rent. Money you send to your mother out of your salary has already been through PAYE, and giving it away is not new income for you. HMRC's questions, when they come, are about income: is everything that funds your transfers income you have declared?
That matters most for people with income from Nigeria. GOV.UK says that if you are UK resident, you will normally pay UK tax on foreign income, which it lists as including wages from work abroad, foreign interest and dividends, rent from overseas property and overseas pensions. You may not have to if you are eligible for Foreign Income and Gains relief. Before 6 April 2025, a person whose domicile was abroad could sometimes avoid tax on foreign income; that rule has changed.
Are you UK resident?
GOV.UK's residence guidance, updated on 1 October 2026, says the tax year runs from 6 April to 5 April and that you are automatically UK resident if you spend 183 days or more here in the tax year. Other tests look at your ties and time spent abroad. Non-residents pay UK tax only on UK income.
Inheritance tax: the gift rules
Gifts can matter after your death rather than now. GOV.UK says gifts given less than 7 years before you die may be taxed, depending on who receives them and their value. Several allowances keep everyday family support out of this:
| Allowance | What GOV.UK says |
|---|---|
| Annual exemption | £3,000 of gifts each tax year; unused amount carries forward one year only |
| Small gifts | Up to £250 per person per tax year, if no other allowance is used on them |
| Wedding gifts | Up to £5,000 to a child, £2,500 to a grandchild, £1,000 to anyone else |
| Normal expenditure out of income | No limit if regular, paid from monthly income and affordable after your usual living costs; examples include financial support to an elderly relative |
| 7 year rule | No tax on gifts if you live 7 years after giving them, unless in a trust |
Taper relief reduces the tax on gifts made 3 to 7 years before death, but GOV.UK says it applies only if gifts in the 7 years before death total more than the £325,000 threshold. For most people sending monthly support home, the normal expenditure exemption is the relevant one, and it depends on showing a regular pattern paid from income.
Worked example
Keeping a simple record of each payment, who received it and why makes this easy for executors to show later; they are the people who would have to account for gifts made in the 7 years before death.
When questions are more likely
- You send more than your declared income could explain.
- You receive rent, business profits or interest in Nigeria and are UK resident.
- You run a side business, for example importing goods from Nigeria, without registering for Self Assessment.
- Large sums move in and out of accounts in other people's names.
Your transfer provider also asks questions, for its own legal reasons. Under the Money Laundering Regulations 2017 it must assess the purpose of transactions and keep the records for at least five years. See why apps ask for source of funds.
The Nigerian side
For the recipient in Nigeria, the NiDCOM-hosted NGEX diaspora guide to the 2026 tax reforms says personal remittances and gifts are not taxable income. Rent from Nigerian property is a different matter and is taxed in Nigeria. If you have Lagos rent, read keeping Lagos rent in naira or pounds; if money comes the other way, is money from parents in Nigeria taxed in the UK covers it.
Where Pryme fits
A clear paper trail answers most questions. Pryme customers can generate a regular or verifiable receipt or statement for payments (receipts), and which records to keep sets out what is worth holding.
Questions people ask
Do I pay tax on money I send to my family in Nigeria?
Not income tax: money from income you have already been taxed on is not new income when you give it away. Large gifts can matter for inheritance tax if you die within 7 years.
Does HMRC check money transfers abroad?
HMRC's interest is in whether your income is declared. If you are UK resident and have income from Nigeria, such as rent, you normally have to pay UK tax on it.
Is regular money to my parents covered by an inheritance tax exemption?
It can be. GOV.UK's normal expenditure out of income exemption covers regular payments from income that you can afford after your usual costs, with financial support to an elderly relative given as an example.
Is the money taxed when my mother receives it in Nigeria?
The NGEX diaspora guide hosted by NiDCOM says personal remittances and gifts are not taxable income in Nigeria.
Sources
- GOV.UK: Tax on foreign income · accessed Oct 2026
- GOV.UK: Tax on foreign income, residence (updated 1 Oct 2026) · accessed Oct 2026
- GOV.UK: Inheritance Tax, rules on giving gifts · accessed Oct 2026
- Money Laundering Regulations 2017, regulation 40 (legislation.gov.uk) · accessed Oct 2026
- NiDCOM / NGEX: Diaspora guide to Nigeria's tax reforms 2026 · 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.