Parents lending child money -Is this allowed?

useyourillusion2

Hi,

Does anybody know the law regarding gift tax when cash is given from parent to sibling?

My parents planned to give me money as a deposit towards a house but i'm not sure if I will need to declare this on my next tax self assessment.

How much can parents give their children before it is taxed?

Thanks

sdooley

There is no tax on gifts (unless the person dies within seven years, in which case there might be some inheritance tax).

If parents give their child (under 18) money which generates interest/income, then if that income is over a certain amount tax has to be paid on it by the parent. But there's no tax on the gift itself, just the interest.