Tax implications of parents paying our mortgage.

agrinnall

badmemory wrote: »

Apologies - I was obviously having a senior moment!

To be fair it was only in the last year that I became aware that the 3K is a limit to the total given, before that I mistakenly thought it was per recipient.

Keep_pedalling

agrinnall wrote: »

To be fair it was only in the last year that I became aware that the 3K is a limit to the total given, before that I mistakenly thought it was per recipient.

You can however give £250 to as many other people as you want. We have been giving our children our £3000 allowances, but as both our daughter and DIL now have very small children and are not currently working we are gifting them more. To keep as much of that as possible out of the 7 year rule we are giving their spouses £500 each and the rest to our children.

dianemiles

Thank you for all your comments!
I have now found out the SJP advisor got to them first and told them to invest all there money with him, so the money would have to be monthly and would come from one of these investment as it’s all been tied up I can’t imagine the commission he received.
I did speak to the same man on Tuesday his money advice to me was take the money and worry about the tax when one of them dies, which I didn’t take as good advice. I’ve received much better from elsewhere!
Can I ask do you think even if we receive the £6000 gift should we have this in writing as the SJP advisor said no?

Keep_pedalling

dianemiles wrote: »

Thank you for all your comments!
I have now found out the SJP advisor got to them first and told them to invest all there money with him, so the money would have to be monthly and would come from one of these investment as it’s all been tied up I can’t imagine the commission he received.
I did speak to the same man on Tuesday his money advice to me was take the money and worry about the tax when one of them dies, which I didn’t take as good advice. I’ve received much better from elsewhere!
Can I ask do you think even if we receive the £6000 gift should we have this in writing as the SJP advisor said no?

Oh dear, as soon as they can they need to get out of SJP. SJP are not independent financial advisers, they are a wealth management company with very high charges, so it is not really their customers wealth they are managing but their own.

They will have been charged in the region of 6% in initial advice set up fees, and their ongoing fees are well over what the vast majority of IFAs would charge. Unfortunately they also charge exit fees if you take your investment out in the first 6 years (6% in the first year falling to 1% in the 6th) so they are stuck with for the short term at least.

dianemiles

I know it’s sad to think SJP have probably made at least £60,000 out of them, but unfortunately you can’t tell your parents. They were more delighted they were being offered free boxes at football matches.
I’ve just got to sort out our route with this.