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Paying parents mortgage - do they have to pay tax on what I give them?
McP_3
Posts: 1 Newbie
I'm buying a house, and to reduce the loan-to-value my parents are remortgaging their house and giving the money to me to use as deposit.
I will pay back their money at exactly the same rate as they are paying off their mortgage so they neither lose nor benefit from the arrangement.
However, they are self-employed and are worried that the money I pay them will count as income and therefore they will have to pay tax on it. Is this correct, or can they take my repayments without fear of being taxed on it?
Thanks very much in advance for your advice!
I will pay back their money at exactly the same rate as they are paying off their mortgage so they neither lose nor benefit from the arrangement.
However, they are self-employed and are worried that the money I pay them will count as income and therefore they will have to pay tax on it. Is this correct, or can they take my repayments without fear of being taxed on it?
Thanks very much in advance for your advice!
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