Form 709
IRS, United States Gift Tax Return
The US gift tax return, which Americans in the UK often need for gifts to a non-US spouse, children or property bought jointly.
What is Form 709?
Most gifts never create US gift tax, because the annual exclusion and the lifetime exemption absorb them. The return is still required once a gift passes the annual exclusion. For Americans married to a British spouse, the rules on gifts between spouses are where filings are usually missed.
US gift tax in a cross-border family
A US citizen or domiciliary can give up to $19,000 per recipient per year without filing.
Above that, Form 709 is required, and the excess reduces the lifetime exemption, which is $13.99 million for 2025 and is shared with the estate tax. Tax is usually payable only once that exemption is used up. Gift splitting between spouses is available only when both are US citizens or residents.
Gifts to a spouse who is a US citizen are unlimited. Gifts to a spouse who is not a US citizen qualify for a higher annual exclusion of $190,000 rather than the unlimited marital deduction. That matters when a couple buys a UK home in joint names with money that came from the American spouse, or when the American pays down a mortgage on a jointly held property. Each can be a gift for US purposes.
Form 709 is due on 15 April following the year of the gift, and an extension of the income tax return also extends it. The UK taxes lifetime gifts on its own terms, with most outright gifts between individuals only exposed to inheritance tax if the donor dies within seven years. A separate US-UK estate and gift tax treaty can allocate taxing rights where both countries claim the same transfer.
At a glance
- $19,000 per recipient
- Annual exclusion
- $190,000 annual exclusion instead of unlimited
- Non-citizen spouse
- 15 April after the year of the gift
- Due
- $13.99 million, shared with estate tax
- Lifetime exemption
Figures are for the tax year stated in the official instructions linked below.
How we handle it
- Gift Tax Returns
Form 709 for US donors and Form 3520 for US recipients of foreign gifts, with the UK inheritance tax position on the same transfer.
- Estate & Trust Planning
Wills, trusts and estate planning for families with US and UK connections, including foreign trust reporting and the inheritance tax position.
- Private Client
Ongoing tax advice for wealthy families with US and UK ties, covering residence, investments, trusts, gifts and the estate position together.
- Cross-Border Property
US and UK tax on homes and rental property held across the two countries, including sales, currency gains, FIRPTA and UK reporting.
Where people go wrong
The Form 709 errors we correct most often.
Who files it
- Americans making gifts above the annual exclusion to children or others
- US citizens funding property bought jointly with a non-US spouse
- Married US couples electing to split gifts between them
- Non-US persons giving US real estate or tangible US property
01
Assuming gifts to a British spouse are unlimited as they would be at home
02
Missing the gift element when buying a home in joint names
03
Electing gift splitting when one spouse is not a US citizen or resident
04
Ignoring the UK inheritance tax position on the same transfer
Why US UK Tax Returns
Every form is prepared against the official instructions, and every position on it is one we can point to in the Code, the treaty or HMRC's guidance.
One File
US and UK returns prepared in the same engagement and reconciled line by line.
Primary Sources
Every position traced to the Code, the treaty, IRS instructions or HMRC guidance.
Scope First
Returns, forms, years and fee agreed in writing before work begins.
The Same People
The team that files this year carries the elections and credits into the next.
Questions we are asked
I am American and my wife is British. Can I just transfer money to her?
You can, but only up to $190,000 a year without using any lifetime exemption, because the unlimited marital deduction is for spouses who are US citizens. Transfers above that need Form 709 and reduce your lifetime exemption. Tax is rarely payable in practice, but the filing is still required, and joint property purchases often count as gifts too.
Will I actually pay US gift tax if I file Form 709?
Usually not. The return mostly records gifts against the lifetime exemption of $13.99 million. Tax becomes payable only once cumulative taxable gifts exceed that amount. The records matter later, because the same exemption is used against the estate at death. Whether any tax is due depends on your lifetime giving, and the filing obligation arises whatever the answer.
Does the UK tax the same gift?
It may. The UK treats most outright gifts between individuals as potentially exempt, so inheritance tax arises only if the donor dies within seven years, with various exemptions available. Gifts into most trusts can be taxed immediately. Where both countries claim the same transfer, the separate US-UK estate and gift tax treaty allocates taxing rights and provides credits, depending on each person's domicile and status.
Primary sources
What this page says is drawn from the official material below. Read it yourself; we would rather be checked than trusted.
Last reviewed
From the Blog
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