Tax on Gifted Deposit?

Dfitzy001

I gifted my son £15k to his £35k for a £50k deposit. His mortgage went through ok. My question to the forum now is regarding tax. My son has been told that he may have to pay an additional £3k on the gifted amount (20% )?? Does anyone know if gifted deposits are taxable?

Tom99

[FONT=Verdana, sans-serif]There is no tax to pay. £12k of your gift (£15k less £3k annual allowance) would be deducted from your inheritance tax nil rate band of £325k if you die within 7 years of the gift.[/FONT]

kingstreet

Dfitzy001 wrote: »

My son has been told that he may have to pay an additional £3k on the gifted amount (20% )?

By whom...?

AnotherJoe

Who told him this? (because its rubbish)

amnblog

Bloke down the pub in all probability.

I guess an IHT Bill could be due on £9,000 if our Donor dies from the stress of all this (after two £3,000 annual gift exceptions) - a £3,600 bill.

More likely the £3,000 is derived from ignorance and Kronenberg.

kingstreet

amnblog wrote: »

Bloke down the pub in all probability.

I guess an IHT Bill could be due on £9,000 if our Donor dies from the stress of all this (after two £3,000 annual gift exceptions) - a £3,600 bill.

More likely the £3,000 is derived from ignorance and Kronenberg.

Ah, yes.

Red Lion Tax & Financial Advice. I saw them on the FCA Register the other day!