Using a gift towards a deposit without showing bank statements

janzbro

theartfullodger said:

Why not simply tell the whole truth?  When I gifted part of deposit to two of my sons each time the lender of their mortgages required ME to sign a document stating it was an outright gift not a loan,. 

and you of course informed HMRC and paid tax on these "gifts" to your children. 
It all in place to stop money laundering - whos to say the person giving you the gift hasnt acquired the money illegally by selling drugs etc. They want to see a paper trail of where the money came from.
You could of course have won it at the racecourse from a bookie (if they were open) 

hazyjo

janzbro said:

theartfullodger said:

Why not simply tell the whole truth?  When I gifted part of deposit to two of my sons each time the lender of their mortgages required ME to sign a document stating it was an outright gift not a loan,. 

and you of course informed HMRC and paid tax on these "gifts" to your children.

What tax do you have to pay on a gift?

NinjaTune

When my son was given £12k by his grandfather towards his deposit,  Grandad was asked to provide a letter confirming it was a gift and that he did not claim any part of the flat in return/as being his.  He didn't have to provide bank statements or evidence of where the money came from.  That was around 3 years ago so I'm not sure if things have changed since then.

@janzbro If the giftee dies within 7 years then the gift will need to be declared if it was in excess of £3k but other than that, no tax to be paid as far as I know?

janzbro

HMRC will need to be informed of any cash gifts given over £3k for inheritance tax purposes 

hazyjo

janzbro said:

HMRC will need to be informed of any cash gifts given over £3k for inheritance tax purposes 

After someone dies. Not before.

davidmcn

hazyjo said:

janzbro said:

HMRC will need to be informed of any cash gifts given over £3k for inheritance tax purposes 

After someone dies. Not before.

And only if the death is within 7 years of the gift (and the gift actually makes a difference to any Inheritance Tax liability).

hazyjo

davidmcn said:

hazyjo said:

janzbro said:

HMRC will need to be informed of any cash gifts given over £3k for inheritance tax purposes 

After someone dies. Not before.

And only if the death is within 7 years of the gift (and the gift actually makes a difference to any Inheritance Tax liability).

Yeah exactly. Someone mentioned it above and I forgot to clarify. Definitely 7 years. Nowt to declare before death.

NinjaTune

davidmcn said:

hazyjo said:

janzbro said:

HMRC will need to be informed of any cash gifts given over £3k for inheritance tax purposes 

After someone dies. Not before.

And only if the death is within 7 years of the gift (and the gift actually makes a difference to any Inheritance Tax liability).

Added to which, if the gift was to both OP and his girlfriend then that's £3k each, so it's within the annual gifting allowance and shouldn't impact on Inheritance Tax.

NinjaTune

janzbro said:

3k limit is for the year not per person but granted not a tax issue unless the die within 7 years 

Correct, my mistake (aka too much wine before posting ...)

theartfullodger

janzbro said:

theartfullodger said:

Why not simply tell the whole truth?  When I gifted part of deposit to two of my sons each time the lender of their mortgages required ME to sign a document stating it was an outright gift not a loan,. 

and you of course informed HMRC and paid tax on these "gifts" to your children. ....................

So sorry to disappoint & I sincerely apologise but I'm not dead yet (notwithstanding interesting thread concerning my death at another site..) so no, so sorry, I haven''t informed HMRC nor paid tax on these "gifts": (PS what in your opinion is the difference between a gift and a "gift" please? ).

Even if I were dead - within 7 years of the gift -  it wouldn't be me paying tax, but my estate.. And I have explained to all my children (well, all of my children that I am aware of..) that there'll be nothing to inherit as I'm drinking all assets.. Cheers!

Best wishes to all.