Paying parents mortage - tax implications

newbie2013

I am thinking of helping my parents with their mortgage as their endowment is not sufficient. Are there any tax implications to this if I make a one off payment(s) to their mortgage, and would I do this direct to the mortgage account or to them?
If I were to pay monthly amounts, would they have to pay tax?

Thanks All

newbie2013

I forgot to mention that their endowment is due to pay out in a few years time and it is well below what is remaining on the mortage

Thrugelmir

There's no implications for you lending or gifting them money.

newbie2013

Would I need to do this in an official way or is the payment into their account from my bank sufficient?
I dont want the tax man to ask questions later on as I want to do everything correctly

Thrugelmir

Why do believe there's going to be issues?

newbie2013

just wanted to check as I have been stung before with tax when gifting money

TrickyDicky101

There's no tax on gifts. I would clearly set out the reasons for the payment in writing and make it clear it is a loan repayable from your parents' estate once both have passed. This will reduce the value of their estate which may limit IHT.

newbie2013

so I cant just pay it into their acount? sorry for the questions

TrickyDicky101

Of course you can if that is your wish.

macman

You've already paid tax (one presumes) on any money you give to them or pay to their mortgage account. HMRC are more interested in money you receive without declaring.
The only tax implication for them would be if you predecease them, and the lifetime transfers within 7 years of your death might be seen as an attempt to reduce the value of your estate and any IHT payable.

newbie2013

I see but isnt it seen as them receiving money from me and hence being taxed on it?