Paying Parents Mortgage

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AR_83
AR_83 Posts: 4 Newbie
in Mortgage-free wannabe
Hi,


I live in the UAE and I want pay my parents mortgage off. Does anyone know if there would be any tax implications for me doing this (for them or me)? My father works but my mother doesn't.


Many thanks!

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  • AR_83
    AR_83 Posts: 4 Newbie
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    To add - this is a gift, I don't want to take ownership of the house or anything like that.
  • Keep_pedalling
    Keep_pedalling Posts: 16,641 Forumite
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    None for them.
  • Keep_pedalling
    Keep_pedalling Posts: 16,641 Forumite
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    AR_83 wrote: »
    To add - this is a gift, I don't want to take ownership of the house or anything like that.

    Unless the UAE have some sort of gift tax, there should be no implications for you.
  • AR_83
    AR_83 Posts: 4 Newbie
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    Thank you - no, there is nothing from the UAE side but I just wasn't sure how it would work on the UK side as I thought in the UK there was an annual gift limit that you could receive.
  • TrickyDicky101
    TrickyDicky101 Posts: 3,514 Forumite
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    I would structure it as a loan (from you to them) if for no other reason than if they subsequently need care - and that ends up being funded by the equity in their property - at least the loan value will be protected.

    You don't need to take a charge over the property but should be properly documented. No interest needs to be paid. Clearly this loan would then comprise an asset within your own estate which may or may not have tax implications for you depending what tax regime you are under.
  • AR_83
    AR_83 Posts: 4 Newbie
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    thank you, I hadn't thought about the possibility of care being funded by the estate. would the bank that they hold their mortgage be able to arrange this for me?
  • TrickyDicky101
    TrickyDicky101 Posts: 3,514 Forumite
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    It's not really anything to do with the bank - but you could get the loan documentation drawn up by a solicitor should you wish. Whilst this would involve cost it would make the existence of the loan abundantly clear which would make it very difficult for anyone (eg local authority) to question in the future.
  • beanielou
    beanielou Posts: 90,308 Ambassador
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    What a lovely thing to want to do.
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

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