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Mortgage Pay off
harrisgun
Posts: 6 Forumite
Not sure if this is the right place to post... but here goes.
My parents have offered to pay off my mortgage... Happy days!
But, is there a tax implication that either party should be concerned about... what about Inheritance tax (IT)?
If we were to agree that this was a repayment loan with a small interest charge would this get over IT liabilities?
My parents have offered to pay off my mortgage... Happy days!
But, is there a tax implication that either party should be concerned about... what about Inheritance tax (IT)?
If we were to agree that this was a repayment loan with a small interest charge would this get over IT liabilities?
0
Comments
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There would be no immediate liability to any tax IHT or otherwise. The gift would be a Potentially Exempt Transfer and, as long as your parents survived for 7 years following the gift, there would be no subsequent IHT liability at all.
Deprivation Of Assets might be a factor should your parents need State-funded care, although it does sound as if they may well have plenty of resources at the moment so maybe this isn't an issue.0
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