Capital Gains Tax on gift

LouiseStone_2

My Dad is looking into using £50,000 via equity release from his property to give to me (his daughter) as a deposit for a new home. Anyone know if this is allowed and if there are any capital gains tax implications?:cool:

CTA_2

LouiseStone wrote: »

My Dad is looking into using £50,000 via equity release from his property to give to me (his daughter) as a deposit for a new home. Anyone know if this is allowed and if there are any capital gains tax implications?:cool:

As long as the gift is sterling, then there is no CGT as sterling is not a chargeable asset.

Only issue would be IHT. If your dad dies within seven years of this gift, it is potentially chargeable to IHT at 40%.

xylophone

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

getmore4less

CTA wrote: »

As long as the gift is sterling, then there is no CGT as sterling is not a chargeable asset.

Only issue would be IHT. If your dad dies within seven years of this gift, it is potentially chargeable to IHT at 40%.

Unlikley gifts use up the nill rate band first so they rarely become taxable unless they total over the nilrate band.


no tax on gifts in the UK.

Some assests need to be assesed for gain on disposal, this cannot happen with cash.

Who will be paying his new £50k mortgage?

CTA_2

getmore4less wrote: »

Unlikley gifts use up the nill rate band first so they rarely become taxable unless they total over the nilrate band.


no tax on gifts in the UK.

Some assests need to be assesed for gain on disposal, this cannot happen with cash.

Who will be paying his new £50k mortgage?

There may be a tax on gifts, are you saying there is never a tax on gifts?

CLAPTON

CTA wrote: »

There may be a tax on gifts, are you saying there is never a tax on gifts?

there is no tax on cash gifts.
there are rules about inheritance tax that mean that the value any gifts made within 7 years of death are counted as part of the estate for IHT purposes.
Any resulting tax liability would normally be paid by the estate

CTA_2

CLAPTON wrote: »

there is no tax on cash gifts.
there are rules about inheritance tax that mean that the value any gifts made within 7 years of death are counted as part of the estate for IHT purposes.
Any resulting tax liability would normally be paid by the estate

Only Sterling gifts are free from CGT. As already stated, IHT may be payable.

If you look at my post above, i already say that there is no CGT on sterling gifts.

However, to state that there is "no tax on gifts" as the other user does, is simply dangerous.

CLAPTON

CTA wrote: »

Only Sterling gifts are free from CGT. As already stated, IHT may be payable.

If you look at my post above, i already say that there is no CGT on sterling gifts.

However, to state that there is "no tax on gifts" as the other user does, is simply dangerous.

I think maybe you are being pedantic without being correct.

ceeforcat

CLAPTON wrote: »

I think maybe you are being pedantic without being correct.

In the extreme - for me, the username CTA suggests that additional weight should be given to answers provided by virtue of holding this qualification.

I am ATII, FTII (and, therefore, old) but would never dream of employing such a username as that as I am sure any of the accountants on here would never use ACA etc, for example.

Still, Each to their own!

CTA_2

ceeforcat wrote: »

In the extreme - for me, the username CTA suggests that additional weight should be given to answers provided by virtue of holding this qualification.

I am ATII, FTII (and, therefore, old) but would never dream of employing such a username as that as I am sure any of the accountants on here would never use ACA etc, for example.

Still, Each to their own!

I worked hard to attain that qualification, I am certainly happy to point out that i hold that qualification.

Stating your are FTII is in effect the same point, so not really sure what your point is?

00ec25

CTA wrote: »

Stating your are FTII is in effect the same point, so not really sure what your point is?

blatantly obvious - your signature block against his none existent signature block and your attempt thereby to create credibility in every post you make compared to his one time only reference to his professional standing

there are many accountants on here who are more self effacing than you and do not rely on "disclaimers" to cover the fact that you have set yourself up to appear as a qualified professional but (quite understandably) wish to avoid professional negligence issues