Mortgage pay off

splod55

I have friend who wants to pay off my remaining mortgage balance for me. Does anyone know if this has tax implications as it will be a gift?

heathcote123

splod55 wrote: »

I have friend who wants to pay off my remaining mortgage balance for me. Does anyone know if this has tax implications as it will be a gift?

Almost certainly so - this is a good place to start http://www.hmrc.gov.uk/cgt/intro/gifts-inherit-divorce.htm#1

Eating_Daisies

I believe that you can be given £5,000 as a gift per (tax) year without having to pay anything on it. I think that this would effectively be seen as a cash gift.

molit

again, check out the link, but istr that there are two areas where you could end up having to pay. The first is inheritence tax, although this isnt an issue if the benefactor lives for 7 years. The other one is less cut and dried, and its viewed as where someone is trying to dispose of their assets so they dont have to pay things like nursig home care etc....I think anything more than 5k a year is relating to thi, but I am nto an expert

as I said though, check out the link

splod55

Many thanks for taking the time to reply. I shall look into it further.:)