Advice please

Adam12345

Hi all - in the process if buying a house. My granny has given me 20,000 as a gift. The solicitor starter pack has asked to declare sources of funds (gifts, savings, loans etc) Should i declare the gift or will we/granny be liable to any tax etc

Thanks

Annisele

You should declare the gift, because if you don't you'll be committing fraud.

Assuming you and granny are both in the UK, there will be no gift tax - we don't have that here. If granny dies within 7 years of making the gift, and if granny's estate is large enough to worry about inheritance tax, there might be inheritance tax to pay at some future point - but not gift tax.

kev118

Hi
Please can you offer me some advice, my mother in law has come to live with my wife and i over a year ago and the plan was to build a granny annexe on our property. We are now moving to a new house with the a granny room already built. Her property was owned by one of hers sons and when it was sold she was given £80k from the sale of the house. She now wants to give us £55k towards the purchase of the new house, will we be liable for any tax on this gift? and following your advice to Adam we will need to declare in our solicitors pack.
Thanks

xylophone

Her property was owned by one of hers sons and when it was sold she was given £80k from the sale of the house.

Granny never owned this property? Her son simply sold a house he owned that he had allowed his mother to inhabit and then gave mother a gift when he sold it?

A note should be kept by the son of the gift he made in case there should be IHT implications at some point.



Granny is making you a gift of £55000 - a "gifted deposit"? This should be declared to the mortgage provider.

Has making her a 'tenant-in-common" been considered?

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS40_deprivation_of_assets_in_the_means_test_for_care_home_provision_fcs.pdf?dtrk=true