Giving Family Members Money.

StudentD

Is there any rules about family members giving others money for help with paying morgages etc?

For example, I am thinking of helping my parents pay a lump off their morgage (£10,000ish)

My uncle and auntie are also willing to pay off £5k each.

My parents will try to pay this back, but this will take time.

Does this have any impact on tax or anything?

Thanks!

Lokolo

Nope!

However, giving away money could lead to inheritence tax complications if the person should die in 7 years of recieving money.

le_loup

Lokolo wrote: »

if the person should die in 7 years of recieving money.

Giver, that is, not the receiver.

Murdina

If you die within 7 years of making a gift then your estate is liable to IHT on that gift (assuming your total estate is above the threshold).

You can however give away 3k a year tax free and count last year's 3k allowance if you have not used it so that would likely cover most/all (maybe stagger if you want to be sure).

Or if there really is an intention to pay it back you could consider documenting it as a loan from the outset - then it is not a gift for IHT.