funding my house purchase

jj1960

just wondering if anyone can advise on this
i want to purchase my council house
i am 58 years old
full time carer for my wife
retired on a pension so getting a mortgage would i think be very difficult
my property will be valued close to £60k
the max right to buy discount is £24k (northern Ireland)
that leaves approx. £36k
I have £20k in a personal injury trust
so that leaves approx £16k and my son has offered to give me the £16k with no payback
my question is ,
is he allowed to do this
i.e. does this have any implictions for him or me with regards taxman etc

i would obviously love to accept this but what are the pro's and con's
any advice would be appreciated
thanks

Computer_Beginner

jj1960 wrote: »

just wondering if anyone can advise on this
i want to purchase my council house
i am 58 years old
full time carer for my wife
retired on a pension so getting a mortgage would i think be very difficult
my property will be valued close to £60k
the max right to buy discount is £24k (northern Ireland)
that leaves approx. £36k
I have £20k in a personal injury trust
so that leaves approx £16k and my son has offered to give me the £16k with no payback
my question is ,
is he allowed to do this
i.e. does this have any implictions for him or me with regards taxman etc

i would obviously love to accept this but what are the pro's and con's
any advice would be appreciated
thanks

Well he can just give you the money in cash. Few hundred pounds at a time. If anyone asks, say you sold some belongings etc.

Real question is, what does your son get out of it? Do you trust each other and will it cause arguments later?

What if you need a care home and the council sell the house?

You may be better off sticking with a council tenancy and claiming benefits in the future. Gives you more security and you can keep your money (not in the bank, obviously.)

BrassicWoman

why do you want to buy it?


now now someone esle has to fix broken boilers and leaky roofs. It sounds like you don't have much spare for that kind of thing.

jj1960

my pension will soon knock me out of the income support
so I will then have to pay £90 a week in rent
so I am thinking I would be better buying the place if I can

Pixie5740

Computer_Beginner wrote: »

Well he can just give you the money in cash. Few hundred pounds at a time. If anyone asks, say you sold some belongings etc.

Real question is, what does your son get out of it? Do you trust each other and will it cause arguments later?

What if you need a care home and the council sell the house?

You may be better off sticking with a council tenancy and claiming benefits in the future. Gives you more security and you can keep your money (not in the bank, obviously.)

:huh: why would the OP and his son have to go through that charade? The son could just gift his father the £16k in one go. There is no gift tax in the UK.

Alternatively the son could lend his father the £16k, placing a charge against the property, with the loan only being repaid when the property is eventually sold which would protect the money from future care home fees.

jj1960

is that true about there being no gift tax
I heard that there was a limit to what you could give before being taxed on it
im not really savvy with this

Pixie5740

Yes it's true there is no gift tax in the UK.

However, If your son dies within 7 years of making the gift and leaves an estate worth more than £325k (£650k if he's married and leaves his estate to his spouse) then some/all of the £16k could be subject to Inheritance Tax.