Balancing not just the budget

RosaBernicia

Well everybody liked the house so I'll talk to the agent tomorrow about an offer. Though it's just occurred to me I need to find out if there are tax implications about the deposit money coming from family, so will also call both the mortgage brokers I already spoke to and the local one the agent recommended. If it turns out that would be a cost then I may need to find out if there are ways round it, even if that means waiting on buying.

Sunday shuffle all done and looking OK. Pleased to note that my 5hopN5can vouchers are about covering my Kindle purchases at present - they won't always but it's nice to feel that's a treat rather than a spend. I'm also still buying less food, as I'm stocking up less, so that cost has gone down.

So happily plodding at present


Rosa xx

Tinkerbelle2000

Hi Rosa. How exciting about the house, seems we all might be moving in the near future.

Don't take my word for it but I think if the money is gifted then there should be no tax implications.

Tink xx

RosaBernicia

Tinkerbelle2000 wrote: »

Hi Rosa. How exciting about the house, seems we all might be moving in the near future.

Don't take my word for it but I think if the money is gifted then there should be no tax implications.

Tink xx

Thanks Tink

I haven't been able to find anything on a quick search of the site, so I'm hoping so. I guess tax would have been paid when it was earned, so for someone to pay again on receipt would be taxing twice.

Never had to think about it before, perhaps it's another example of how much easier it is to make and keep money when you have money!


Rosa xx

doingitanyway

An offer on a house and you call that plodding? I call that exciting and dynamic
I hope it goes well.

RosaBernicia

Thank you DIA

Accountant friend has just texted me back and confirmed no tax on gifted money


Rosa xx

RosaBernicia

You're right, it is exciting

I am not at all sure they will accept the offer, as I won't be offering the asking price, but even if this house doesn't happen I have found a good place to keep looking.


Rosa xx

ZTD

RosaBernicia wrote: »

I haven't been able to find anything on a quick search of the site, so I'm hoping so. I guess tax would have been paid when it was earned, so for someone to pay again on receipt would be taxing twice.

It is. But did you know you pay VAT on fuel duty?

It would be subject to Inheritance Tax if the giver died within 7 years, but I guess we're not talking those kinds of sums.

EssexHebridean

The one thing to know about a gifted deposit is that the mortgage company will require a letter signed by the donee stating that it IS a gift, and that they do not expect nor will receive any rights over the property. I'm guessing your mortgage broker may already have mentioned that though. If I would you I would ask the solicitor to draft the wording to you so that you can get that in place as early as you can, as sometimes delays on things like that can delay the release of funds for completion.

Such an exciting time - and you never know with offers, sometimes you get someone at just the right point, when they have decided that they need to get things moving, or have even seen the perfect place to move to themselves, so need to get their own place sold! :T

RosaBernicia

ZTD wrote: »

It is. But did you know you pay VAT on fuel duty?

It would be subject to Inheritance Tax if the giver died within 7 years, but I guess we're not talking those kinds of sums.

Thanks Z

I really hope the inheritance thing won't be an issue!

RosaBernicia

EssexHebridean wrote: »

The one thing to know about a gifted deposit is that the mortgage company will require a letter signed by the donee stating that it IS a gift, and that they do not expect nor will receive any rights over the property. I'm guessing your mortgage broker may already have mentioned that though. If I would you I would ask the solicitor to draft the wording to you so that you can get that in place as early as you can, as sometimes delays on things like that can delay the release of funds for completion.

Such an exciting time - and you never know with offers, sometimes you get someone at just the right point, when they have decided that they need to get things moving, or have even seen the perfect place to move to themselves, so need to get their own place sold! :T

Thanks EH

It had been mentioned that a statement was needed to prove it was a gift, and I've already made the giver aware of that. Great idea to get the wording agreed early.

I have been messing with Excel to see what costs would be like and am pleased to find that I should still have a little leeway even with the additional mortgage costs. The council tax would be a whole extra £4 a month :rotfl: , despite going from 1 bed flat to 3 bed house, which just proves again how bonkers this area is. I will need to be careful about furnishing though and intend to do this over time, perhaps with some secondhand bargain hunting and finally making use of the sewing machine!

We'll find out more tomorrow!


Rosa xx