Sibling gifting

mrswoo55

My brother wants to gift me a substantial sum of money. Is there a limit to how much he can give to me in 1 year? And am I liable for any tax on this gift? Really need some good advice - I am totally confused!!

CLAPTON

your brother can give you any amount of money he likes

neither of you will be liable for any taxation except that, if he dies within 7 years then the value of the gift will be added back to his estate and may be liable for inheritance tax (depending upon the value of his total estate)

mrswoo55

Do I need to declare the money to anyone?

The reason he is helping me is that I am struggling to sell my house and have found one that I would like to purchase, but I cannot afford mortgages across 2 properties. He is going to give me enough money to "cover" my current mortgage leaving me free to port it to the new house. A bit complicated but means then it takes the pressure of selling my existing house.

CLAPTON

no
you won't need to declare it to anyone

mrswoo55

Thanks - how do you know all this should I take your business card? ;-)