Gifted deposit - are we breaking any rules?

jimjamspread

Hi there

Myself and partner are currently in the process of buying our first home. My partners parents have given us £5000 to go towards our house deposit and have transferred the money into our joint account.

We recently got a mortgage in principle and declared this to the lender. My partners parents have filled in a form saying that they have waive all rights to the property in the event of a repossession.

With £5000 sitting in our account we decided to use £4000 of that to fill my partners yearly Lifetime ISA contribution to benefit from the £1000 government bonus.

But now we are a bit uncertain about this and were wondering if we are breaking any rules?

I have read lots of information online and from what I can decipher basically £2000 of the £5000 gift is liable for inheritance tax as the £5000 goes over the tax-free yearly gift allowance. But this only matters if the persons giving the gift do not live longer than 7 years from now. And since the money is in our account I assume we can do what we want with it?

Any help much appreciated!

stephen.rooke

if they haven't passed away then your fine

amnblog

You have not broken any rules but keep an audit trail (statements) of the funds coming to you and where they have been as your Solicitor or Lender may request it.

jimjamspread

Thanks both. We can relax now!

System

Yeah, you’re fine... don’t worry about it