How long to keep a gift not to be considered as deposit gift

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audigex wrote: »

If your parents are not and will not be liable for inheritance tax, it's your money as soon as they give you it. You may need to prove it's a gift (a letter is sufficient, but some lenders will require a more formal form from your parents), and you may need to pay some kind of insurance against your parents potentially claiming equity in the house. This isn't likely to be expensive, I believe mine was around £100 for a £10k gifted deposit

If your parents could be considered liable for inheritance tax, the above applies but the important milestone is 7 years! If they die within 7 years, the gift could be considered part of their estate and is therefore not necessarily your money. That said, as long as you're going to receive more than £8k from their estate after debts, it's unlikely to be an actual issue - again, it's just paperwork

https://www.gov.uk/inheritance-tax/gifts

That is not how gifts and IHT work

The gift is yours and remains so.

Unless it forms part of much larger(£325k+) set of gifts in the last 7 years there will never be a tax liability on the recipient, only the estate.