Father in Law GIVING us money for a deposit.... any implications?

zaksmum73

HI everyone.
My very generous father in Law is giving us (entirely, without want of being repaid EVER) £30k for a deposit for a property.
Does anyone know what/if any tax implications there are to this?
The money is sorted from his side and ready to move into my account, but I am anxious I'll suddenly get hit with tax or something similar.

Any advice or points to advice would be appreciated
Thanks

Oh and please wish me luck with my mortgage application which went through today!!! eeeeeek

zaksmum73

oh by the way, please ignore the figures in my signature - very out of date and inaccurate now!!!

opinions4u

No income tax for you.

No tax for him.

If he dies within 7 years his estate may have to pay Inheritence Tax (if he's worth a lot). But that doesn't mean you have to repay the £30k.

ACG

As the above poster has said nothing to worry about unless he dies.

You may need a letter from your father in law stating he is giving you the money without reservation as a gift to satisfy the lender... but they will ask for it if they need it.

Redouble

Would capital gains tax come into play when you sell the property perhaps.
We are in a similar position (but with higher numbers) and will have to pay £20k capital gains tax when we sell the property. Xx

CLAPTON

Redouble wrote: »

Would capital gains tax come into play when you sell the property perhaps.
We are in a similar position (but with higher numbers) and will have to pay £20k capital gains tax when we sell the property. Xx

no, there is no cgt liability when the property is sold, unless the FIL is part owner and on the deeds of the house

what are your circumstances that you believe you will be liable fo cgt?

xylophone

Father- in- law should write you a signed and dated letter (and keep a copy for himself to be stored with his will) stating that he is making you/your spouse an outright gift of the sum of £30000.

CLAPTON

xylophone wrote: »

Father- in- law should write you a signed and dated letter (and keep a copy for himself to be stored with his will) stating that he is making you/your spouse an outright gift of the sum of £30000.

why
?

cte1111

CLAPTON wrote: »

why
?

So that is FIL dies within 7 years of the gift and his total estate is over the IHT limit, then however is dealing with the estate is aware of the potentially exempt transfer.

CLAPTON

cte1111 wrote: »

So that is FIL dies within 7 years of the gift and his total estate is over the IHT limit, then however is dealing with the estate is aware of the potentially exempt transfer.

(sadly) I've spent most of my life givng money to my children but I don't keep a record and there is no legal obligation to do so.

But I suppose if the executors of some-one's will are not the beneficiaries then maybe a list would be useful.

xylophone

In addition, as this is a gifted deposit, the mortgagee might require sight of such a letter.