Grandparent wants to give me ££

liverpoolcarl

Hi All,

My nan would like to give me £40k over the next 6 months.

My girlfriend works at my bank and has said to be careful as it might flag money laundering checks.

Also she has said it may cause tax issues.

Neither of us are the best on this so any help will be greatly appreciated..

Pssst

Tell her to give it to me and I'll pass it on to you in dribs and drabs..

liverpoolcarl

How did I know that would be the first reply :-)

fengirl_2

There is no gift tax in the UK, so there would be no liability on you. However, if yoour gran dies within 7 years of giving this money to you, it may affect the Inheritance Tax liability of her estate. I assume she will be taking advice on this.
As to money laundering, thousands of people deposit thousands into their accounts daily withoout any problem. However, as you will be able to show where the money has come from, I dont see a problem.

CLAPTON

There is no reason why your gran can't give you 40k. If the bank queries it for money laundering reason you can show them where it cames from... no problems

If your gran has assetts over 325,000 or 650,000 (if married) and dies then her estate may be liable to IHT on the excess.
If she gives you 40k and dies within 7 years then the 40k will be 'added' back to her estate for IHT purposes.

Otherwise there are no tax implications either for her or for you.

liverpoolcarl

Thanks everyone. My Nan has around 60 to 70k including what she is giving me so well below IH. Thanks again..

Mojisola

What is her health like? If she needs to go into a home in the next few years, the local authority would assess her as still having that money. Her remaining money might be enough to cover her costs initially but if it runs out she could be in a difficult position.

mrposhman

liverpoolcarl wrote: »

Thanks everyone. My Nan has around 60 to 70k including what she is giving me so well below IH. Thanks again..

does this include all assets or just cash as Inheritance tax is across all asset classes that she owns.

dzug1

Unless you are depositing the money as cash I doubt if there will be money laundering issues - not ones that will stop you depositing it anyway. It will mean work for the bank maybe filing a report but not you.