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What constitutes a gifted deposit - birthday money

asm89
asm89 Posts: 136 Forumite
Fourth Anniversary 100 Posts
in House buying, renting & selling
Hi there

I hit a birthday milestone last month, so I got cash gifts from some family members of around £700 in total.

I put this towards by deposit by putting the cash into my LISA. I could have used the birthday money for anything really but chose to put it in savings.

Will this be classed as a gifted deposit, and do I need to inform my mortgage lender/solicitors as i'm looking to purchase soon.

Thanks

Comments

  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Perhaps others will disagree, but it’s such a small amount (in the context of a house deposit) I wouldn’t disclose it separately from savings. Unless you are buying a really cheap flat with a really tiny deposit!
  • Semple
    Semple Posts: 392 Forumite
    Seventh Anniversary 100 Posts Name Dropper Combo Breaker
    3k is your annual exemption.

    Although you say family members being plural. The 3k is the exemption of the person gifting the loan, not the one receiving it. So your mother and your auntie could gift you 6k without any tax implications to themselves.
  • HampshireH
    HampshireH Posts: 4,831 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    No. They haven't gifted you a deposit. They gave you birthday money to spend as you please to celebrate your birthday.

    If you are really worried about it pay the bills with it and then transfer your saved money from your current account into where the savings are to replace it.

    Its less than a rental payment. It wont be deemed a house deposit gift.

    If you are applying for a mortgage imminently then you may just need to explain it appearing in your account if unusual
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It's a small amount, not worth "worrying" about it - it's just savings. Nothing "gifted" about it. It doesn't stand out as a sudden/large amount of any note.
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