is tax payable on gifted deposit?

haydens_mum

Hi i was just looking for some advice, we had a 5% deposit saved up, but to get a better rate my nan has given us a further 5% (£7,500). My question is will she or i be liable to pay any tax on this?!

Any advice would be most appriciated!

getmore4less

There is no gift tax in the uk.

Under mosts curcumstances it all remains part of her estate for 7 years which has IHT implications for an estate over £325k

holly_hobby

GM4L has discussed IHT/PET implications, which is increased from 325k to 650k, if a married couple and tsf of unused nil rate band is implemented.

Gifted deposit will ordinarilly have to be declared as part of the application process, by which the lender may require the Donor to confirm that it is a gift without reservation, which is nothing to worry about and part of ordinary uw procedures.

Hope this helps

Holly

haydens_mum

holly_hobby wrote: »

GM4L has discussed IHT/PET implications, which is increased from 325k to 650k, if a married couple and tsf of unused nil rate band is implemented.

Gifted deposit will ordinarilly have to be declared as part of the application process, by which the lender may require the Donor to confirm that it is a gift without reservation, which is nothing to worry about and part of ordinary uw procedures.

Hope this helps

Holly

Thankyou very much for your help! Yes we have to provide a letter stating she does not want it back, but she was worried the tax man would come after her when tax has already been paid!lol

Thankyou!

holly_hobby

Pleasure to help ....

H x