Implications (tax) of giving my partner's parents £80000 to buy their home.

Dani1987

Hello. Not sure if this is in the right thread, so apologies. I've recently been left with an inheritance of £150000. Me and my partner are already financially secure and wanted to know what the potential implications (tax or otherwise) are if I was to give his parents £80000 to buy their home? It's a council house and they have the right to buy. Any help would be greatly appreciated. Thank you in advance.

amnblog

1. First consideration is will you have an inheritance tax to pay on your received funds.

2. If you then gift them £80,000, there is no tax implication for you. However, if you die within 7 years of making the gift, there could be for them.

All the curve balls and issues here are not to do with taxation.

PasturesNew

Once you've given them the money, it's gone..... so think that one through carefully.

What's the overall plan? Partner's not even put a ring on it!

Once they own the house, what if they give it to the cat's home, or their jobbing gardener, or they die intestate and the house is sold and your partner only gets back a small percentage. What if they go into care and the house is sold to fund that and all the money's gone?

Too many dangerous "what if" scenarios.

Sea_Shell

Not to mention them then having responsibility as a homeowner. Repairs, maintenance etc. which they don't have to worry about at present.

Your money, I think, would be better "drip fed" to them to make their everyday lives better ... especially if you pay for things directly, so it's not a specific quantifiable gift. (Not 100% sure of the rules there, if you were to say pay directly for a holiday, rather than give them the money for a holiday??)

Sea_Shell

Do you still have your parents??

Do you have, or are planning children of your own?

getmore4less

How recently?

If you are over your nil rate band a DOV may be worth considering.

If you want some control then a loan might work

Dani1987

Thank you to everybody for taking the time to reply.

There's no inheritance tax to pay on the funds. Family member died March of this year. Nearly all finalised with the solicitor, but there's still a property to sell. The combined total will not breach £325000 ceiling though.

I understand everybody's concerns, but they are the salt of the earth and everything would be left to us again in the event of their death's I've no doubt whatsoever.

Not married just yet but will be in a few years time and kids not long after. We've focused on our careers, so everything else has been on the back burner. My Mum is still alive and in good health, but she's secure financially and wants for nothing.

There are definitely more financially beneficial ways of helping them, but we have said for years we would help them buy their home if we ever had the chance. Our only concern was tax/law implications.

jennifernil

If you decide to help them buy the house, why not do it in the form of an interest free loan and place a charge on the property.

That way, should they need care, and the house needs to be sold to pay for it, your cash will be safe.

Dani1987

Really good idea jennifernil. Definitely need to look into it more and maybe get in touch with a financial consultant. Thanks.