Gift of money from parents

Maziechocolate

Hi - I'm fairly new here, but wondered if anyone can help. My dad is selling his house, and has said he might want to give me £10,000 so I can pay a bit of my mortgage off with this money, which is really nice of him.

What I would like to know is, how would this affect any tax credits I currently receive. We have one income in the household, and we receive some tax credits. I am guessing I would need to inform tax credits, but have no idea how this works as it will be going into my mortgage. Is it classed as income?

Can anyone help? Thanks.

northerntwo1

No you don't. If you are really worried ask dad to write the deposit direct to your mortgage.

Maziechocolate

northerntwo1 wrote: »

No you don't. If you are really worried ask dad to write the deposit direct to your mortgage.

Would getting my dad to send money direct to the mortgage be allowed? I dare say though, the mortgage people don't care how they get their money.

I know there is a section that asks for any other income on tax credits, but I have never filled that part in before, never needed to, which is why I wondered if this counts.

Morglin

Yes, your dad is allowed to spend his money paying a mortgage company without it affecting your claim at all.

Lin

sleepless_saver

Maziechocolate wrote: »

I know there is a section that asks for any other income on tax credits, but I have never filled that part in before, never needed to, which is why I wondered if this counts.

It's not income, it's capital so it doesn't need to be included. For example if you put the gifted money in a savings account, the interest from that would count as income but the capital would not need to be declared. (NB this will change under Universal Credit).