Gift from my Mum

LetMeBakeCake

Hi everyone. My Husband and I were planning to take some money out of our mortgage in September for renovations on our house - about £45k.

My Mum has recently inherited a sizeable sum and has said she would like to pay for it instead - I’m very lucky indeed 🙂

I’m hoping my mum will be around a lot longer than 7 years but I’m just asking the question do we need to think about tax? She won’t be handing me the cash, but rather paying for a new bathroom/carpets/curtains and blinds/a decorator/some furniture etc

Thank you in advance for your help!

[Deleted User]

This should help: https://www.gov.uk/inheritance-tax/gifts

Keep_pedalling

How long ago did she inherit the money? If the testator died under 2 years ago she can complete a deed of variation which effectively means the money never entered her estate.

agrinnall

You don't have to think about tax at all, the recipent of a gift never has any tax to pay. If your mum was unfortunate enough to die within 7 years then her estate may be subject to inheritance tax on the value of the gift, if the estate is subject to IHT at all.