Tax on financial gifs.

stevenclark83

Hi all.

My mother has recently sold her home and is currently living in rented accomodation. She made 90k from the sale of the house and is looking to give me 70k so i can purchase the last 30% of my home (i currently only own 70% through a part ownership scheme with the developer.). This will only be for about 4-5 years till i sell my prpoerty. We are looking to do this as an investment for my mother rather than her leaving it in savings. I would like to know if there would be any TAX implications in doing this.

All advice would be appreciated.....

CLAPTON

There is no tax on gifts as such although any such gift would be counted for IHT purposes if your mother died within 7 years.
IH tax would only be payable if your mother's estate (plus the 70k gift) came to more than the IHT allowance (currently 300,000 or 600,000 (depending the situation with her husband)).

If she was however investing in your property and as such was part owner then when it was sold she might be liable for capital gains tax.

Given the current housing market situation I wouldn't suggest you treat this as an investment... there's no guarentee that prices will go up over the next 4-5 years.

Murdina

Just as a bit extra to Clapton's advice, is there any chance that your mother might move in with you? If the payment is treated as an outright gift and you use it (in effect) to pay for something she then gets a benefit from ( a home) she could become liable to an income tax charge called pre-owned assets (unless she pays you market rent).