I have a rich uncle....

mail2z

Probably cheaper to buy the house under your uncle's name and he puts you in his will for that house as this can be classed as inheritance rather than gift and probably treated differently for tax purposes. Just another thought among other numerous offers to marry you.

SnooksNJ

ValHaller wrote: »

This is a UK site. We know nothing of this IRS.

Lucky for the OP as an American I am familiar with the IRS. If you are American and are given more than $13K the IRS would want 40% so they can fund line dancing instructional video's and Star Trek recreations.

http://wonkette.com/518807/heres-that-stupid-bad-irs-star-trek-video-that-wasted-enough-taxpayer-money-to-fund-30-seconds-of-iraq-war

http://www.youtube.com/watch?v=-zRTyb5Hdj8

tim123456789

J_i_m wrote: »

He'd probably have to pay a hefty tax to "gift" you the money as well.

Nope

The UK hasn't had gift tax for decades.

It's superseded by inheritance tax which can never be paid by the giver.

tim

TrickyDicky101

Why doesn't your uncle just lend you the money to buy the house then he (and you) can restructure the repayments any way you want without further tax implications other than possibly income tax on any interest on the loan you pay to your uncle.

CLAPTON

Gifts are tax free in the UK for both giver and receiver except for the 7 year rule associated with inheritance tax.

If he lent you the money then there is no tax either way unless you pay him interest in which case he would need to declare it.


It would seem simpler for him to give you the money and then you buy the house: saves solicitors fees and stamp duty complications.

xylophone

Your uncle is a UK resident?

He can make you an interest free loan and you can repay him.

He can make you an interest bearing loan and you can repay him.

The interest would be your uncle's income for tax purposes.

You should set up a witnessed loan agreement.

Your uncle could gift you a house/the money to buy one.

There could be IHT considerations - see http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

Your uncle should keep a record of the gift with his will.

If your uncle is not a UK resident, then he needs to look to the situation where he lives/is tax domiciled etc.

salim_shady

He's a uk resident...

So do you think an interest free loan would be simpler?...he would never accept interest from me

xylophone

Your uncle can make you an interest free loan - it would be a good idea to involve his solicitor in setting up the loan and repayment terms and covering what would happen in the event of his death before the loan was repaid etc.

ValHaller

SnooksNJ wrote: »

Lucky for the OP as an American I am familiar with the IRS. If you are American and are given more than $13K the IRS would want 40% so they can fund line dancing instructional video's and Star Trek recreations.

http://wonkette.com/518807/heres-that-stupid-bad-irs-star-trek-video-that-wasted-enough-taxpayer-money-to-fund-30-seconds-of-iraq-war

Hey, they got 5 mins 22s of bad video for the price of 30s of bad war. They could have had 80 or 90 years of bad video for the cost of the war and the world would probably be a better place. Don't knock the IRS.

ElkyElky

Almost 2 years ago, I was gifted cash to buy a house from my mother. I found the house that I wanted, she transferred the cash to my account and I bought it. She doesn't want it repaid, or even own a % of the house... it was a complete no-strings gift.

There was no tax implications, no questions.. nothing. My solicitor was fully aware of the situation and the only thing he mentioned was the 7 year rule thing.

Good luck with your 'rich uncle'.