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Pay off sons mortgages
evenasus
Posts: 11,866 Forumite
I would like to pay off both my sons mortgages but don't know the consequences of tax that would probably be due. Does anyone have any idea?
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Comments
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None unless your estate is over the IHT limit and you die within 7 years. Then the amount would be seen to still be part of your estate but I believe there would be some sort of taper relief depending on how long into the 7 years.
Have a read here;
http://www.hmrc.gov.uk/cto/customerguide/page6.htm#70 -
Here I am your long lost other son.0
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Hey Dad how are you?
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Thanks for the link Jem16, I will go there right now and have a read. Unfortunately, for me that is, including my house, I am over the IHT threshold. All hard earned and saved over the last 45 years. The only money I've ever won has been the odd £10.00 on the lottery and £25.00 on premium bonds many years ago.
Nice try guys - chappers & Dan0 -
Unfortunately, for me that is, including my house, I am over the IHT threshold.
It won't matter to you, only kicks in after you are dead!...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
I was including my husband in the IHT allowance.
Neverdespairgirl - It may not matter to me after we're dead but I would hate the thought of the tax man getting so much as a penny of our hard earned savings. He's already taxed us quite enough.0 -
I was including my husband in the IHT allowance.
Neverdespairgirl - It may not matter to me after we're dead but I would hate the thought of the tax man getting so much as a penny of our hard earned savings. He's already taxed us quite enough.
I quite agree - nothing you can do though.
At least better to let your sons have the benefit of the cash now to pay off the mortgage now. Taper relief would come into play for each year after the gift.0 -
Neverdespairgirl - It may not matter to me after we're dead but I would hate the thought of the tax man getting so much as a penny of our hard earned savings. He's already taxed us quite enough.
Hard to avoid it completely, though, I'm afraid. There are ways of reducing it, though, such as giving a sum per year (in the very rough region of £4 per parent to each child) which doesn't count for IHT....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
If you don't pay off their mortgages a higher amount of IHT will be payable when you die anyway, unless you take steps to mitigate itI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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