Question about gift aid

ironmanjason

I got a question about the gift received from my parents.. The money received has been sitting in my accounts (partly in current and rest in ISA) for about 2 1/2 months.. I have all the necessary letters/bank statments etc from my father who lives outside the EU and all notarized.

Now in terms of the deposit itself I am paying this can be shown as money saved by my partner and I. some part of the gift money will be used towards the Stamp Duty and the rest as emergency fund etc.

I have informed this to both the solicitors and my MA. MA is of the view that we fill the application to say deposit saved is from savings and show them the proof of that (again this is also partly in the same current account) and bank will should not have an issue.. Solicitor on the other hand wants to see proof for the gift deposit as it will be used in the property transaction.. is the approach taken by my MA right or should I be worried that my MA will be filling in false information in the application form?

and oh the bank is Nationwide.

ACG

If any of the money is going towards the deposit, it is a gift.
If it is all going towards fees, I would probably check with the lender.

Ultimately, if the lender said show us a build of your income saving the deposit, you can not do that. There is an argument as to how long money needs to be in your account before it is classed as savings, but it is more than 2-3 months in my opinion.

ironmanjason

ACG wrote: »

Ultimately, if the lender said show us a build of your income saving the deposit, you can not do that. T.

I can show the income to save this deposit as all monies were received from job earning/dividends.

The issue is that my account has a mix of both this saving and part of the gift aid in it. The MA just informed me that since we will not use the gift for deposit it should be fine but that will add this into the notes.

Just to be on the safer side do I just ask my MA to say the money is combination of gift and saving and submit the required proof?

Thrugelmir

Solicitor will perform whatever checks the lender requests. Irrespective of what gets provided at the outset. Solicitors opinion is what matters.

ironmanjason

Ok so if solicitors ask the Bank - are you aware some money used in the transaction is gift aid then bank will step back and say this was false information? That is what I am a bit worried.. I am going to ask my MA to call the BDM at the bank and confirm.

davidmcn

"Gift Aid" is the tax relief for charitable donations, you're talking about what is more commonly called a gifted deposit (or just a gift!).

Thrugelmir

Solicitor will report what he finds. If there's an auditable trail then gifted deposit from parents should not be an issue. Is the country of origin of the funds potentially an issue?

ironmanjason

Yes sorry my bad.. its just gifted deposit or gift

I spoke to my solicitors.. and they say I need to make sure the bank is aware that there are gift monies sitting in my saving account. and the MA says she will add it as notes so bank is aware..

Since I have not seen how the online mortgage application looks is this something that can be entered manually and will banks consider that?

The country of origin should not be an issue either because the money is from savings my father has done after paying all local taxes etc.

ACG

I think I would take the same view as your broker then personally. BUT if it has been disclosed to the lender, there should be no issue.

ironmanjason

Thanks. Just to be on the safer side I have asked her to say the source of the deposit is savings and Gift combined and I can give all the necessary documents for the gift money. Fingers crossed!

Thrugelmir

ironmanjason wrote: »

The country of origin should not be an issue either because the money is from savings my father has done after paying all local taxes etc.

If there's an embargo on the country of origin then the source is irrelevant.

You should state that part of the funds have originated from overseas. Your parents will need to provide notarised ID as well.