Parents want to,pay a lump sum off my mortgage

oggy1975

Hi
Mum and dad want to give me 10k which will more or less pay my mortgage off . Will I be taxed on this if I pay the cheque into mine and hubbys account
Thanks
Oggy

uknick

No; assuming it is a gift from your parents and you're part of the UK tax system.

Also, if no other money has been gifted by them in the last 2 tax years, £6k of the amount will be outside of any Inheritance Tax calculation, £3k for this year and £3k carried forward from last year.

oggy1975

Ok they want to give me 10 k is this ok they have never given me any money before

AnotherJoe

oggy1975 wrote: »

Ok they want to give me 10 k is this ok they have never given me any money before

Yes its perfectly OK and there is no tax for anyone to pay.

If your parents are filthy stinking rich and die leaving a million or more within the next 7 years come back as there might be a little bit at that point.

agrinnall

AnotherJoe wrote: »

If your parents are filthy stinking rich and die leaving a million or more within the next 7 years come back as there might be a little bit at that point.

But the OP won't have anything to pay, if any IHT is due it will be levied on the estate of the dead parent.

jennifernil

uknick wrote: »

No; assuming it is a gift from your parents and you're part of the UK tax system.

Also, if no other money has been gifted by them in the last 2 tax years, £6k of the amount will be outside of any Inheritance Tax calculation, £3k for this year and £3k carried forward from last year.

Each parent can gift £3k per annum, so the £10k is more than covered by this year's and last year's IHT allowances

Keep_pedalling

jennifernil wrote: »

Each parent can gift £3k per annum, so the £10k is more than covered by this year's and last year's IHT allowances

You can gift as much away as you like, the £3 is just the IHT exempt allowance.