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Gift/Loan to cover moving costs
Bunman
Posts: 1 Newbie
Hi all
I wondered if anyone can help. Myself and my wife are looking to move in the next few months. We have equity in our home and a lump sum to make the deposit reasonable, although not up to the level to get the most competitive deals on the market.
My mother has offered to cover the moving costs (stamp duty, removals, solicitor fees etc). I estimate that these will be £5-6k.
Does anyone know of the tax implications for my mother of doing this. I am aware that there is a tax free allowance as a gift of around £3k but obviously this will exceed that. But I have read that more and more younger people are getting help from their parents, and I assume it cannot always be a loan and will usually be more than £3k!
Your help would be appreciated!
Bunman!
I wondered if anyone can help. Myself and my wife are looking to move in the next few months. We have equity in our home and a lump sum to make the deposit reasonable, although not up to the level to get the most competitive deals on the market.
My mother has offered to cover the moving costs (stamp duty, removals, solicitor fees etc). I estimate that these will be £5-6k.
Does anyone know of the tax implications for my mother of doing this. I am aware that there is a tax free allowance as a gift of around £3k but obviously this will exceed that. But I have read that more and more younger people are getting help from their parents, and I assume it cannot always be a loan and will usually be more than £3k!
Your help would be appreciated!
Bunman!
0
Comments
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I understand the £3k limit is for inheritance tax. Tax is only payable on gifts in excess of this amount if the person making the gift dies within 7 years of making it and even then only if there estate is greater than the allowance.
Other than that, I don't think there are any tax implications.0
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