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Can we give our daughter some money to help her buy a bigger house.
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dotty60
Posts: 2 Newbie
We have approx £350000. Is it possible to give our daughter some money to help her buy a bigger house. Will there be taxes to pay
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Comments
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We don’t have gift taxes in the U.K. so there is no tax to pay.
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https://www.gov.uk/inheritance-tax/gifts
I would read this^^^:cool:If you want to do something, you will find a way.If you don't, then you will find an excuse...:cool:0 -
Yes you can give as much as you want.The potential issues down the road are Deprivation of Assets and Inheritance tax. If neither of those seem likely then theres no issue.As said, there is no tax to pay.0
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my parents 'gave' me 50k (their life savings) to help me buy my house.
The mortgage company did question the size of my deposit given I wasn't selling a house. They asked for a letter stating it was a gift that did not need to be repaid. This was about 8 years ago.
So yes you can!
I think if the mortgage company think its a loan, they include the repayment in the affordability checks they do.
I have been 'gifting' them £200 a month since I bought my house. I will till I've 'gifted' them the full amount back.
Its worked out well for us.# 36 1p challenge 2024 - £536.60
#13 POYD by Christmas 24 £2875 / 81382 -
Couldsavemore said:my parents 'gave' me 50k (their life savings) to help me buy my house.
The mortgage company did question the size of my deposit given I wasn't selling a house. They asked for a letter stating it was a gift that did not need to be repaid. This was about 8 years ago.
So yes you can!
I think if the mortgage company think its a loan, they include the repayment in the affordability checks they do.
I have been 'gifting' them £200 a month since I bought my house. I will till I've 'gifted' them the full amount back.
Its worked out well for us.3 -
Aranyani said:Couldsavemore said:my parents 'gave' me 50k (their life savings) to help me buy my house.
The mortgage company did question the size of my deposit given I wasn't selling a house. They asked for a letter stating it was a gift that did not need to be repaid. This was about 8 years ago.
So yes you can!
I think if the mortgage company think its a loan, they include the repayment in the affordability checks they do.
I have been 'gifting' them £200 a month since I bought my house. I will till I've 'gifted' them the full amount back.
Its worked out well for us.Signature removed for peace of mind2 -
Savvy_Sue said:Aranyani said:Couldsavemore said:my parents 'gave' me 50k (their life savings) to help me buy my house.
The mortgage company did question the size of my deposit given I wasn't selling a house. They asked for a letter stating it was a gift that did not need to be repaid. This was about 8 years ago.
So yes you can!
I think if the mortgage company think its a loan, they include the repayment in the affordability checks they do.
I have been 'gifting' them £200 a month since I bought my house. I will till I've 'gifted' them the full amount back.
Its worked out well for us.0 -
Aranyani said:Couldsavemore said:my parents 'gave' me 50k (their life savings) to help me buy my house.
The mortgage company did question the size of my deposit given I wasn't selling a house. They asked for a letter stating it was a gift that did not need to be repaid. This was about 8 years ago.
So yes you can!
I think if the mortgage company think its a loan, they include the repayment in the affordability checks they do.
I have been 'gifting' them £200 a month since I bought my house. I will till I've 'gifted' them the full amount back.
Its worked out well for us.If there is no legal agreement in place for the OP to repay the 'gift' from their parents then where is the mortgage fraud?The fact that the OP has chosen to give their parent £200 a month is a private arrangement and therefore completely irrelevant as far as the mortgage company is concerned. It is also well below the £3000 per year gift limit so there are no tax implications.I'd bet there are parents up and down the country who have given their children money towards buying a house and why shouldn't they? Who cares? The mortgage company is getting their repayments and the parents/children's financial affairs are their own private business.
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Mickey666 said:Aranyani said:Couldsavemore said:my parents 'gave' me 50k (their life savings) to help me buy my house.
The mortgage company did question the size of my deposit given I wasn't selling a house. They asked for a letter stating it was a gift that did not need to be repaid. This was about 8 years ago.
So yes you can!
I think if the mortgage company think its a loan, they include the repayment in the affordability checks they do.
I have been 'gifting' them £200 a month since I bought my house. I will till I've 'gifted' them the full amount back.
Its worked out well for us.If there is no legal agreement in place for the OP to repay the 'gift' from their parents then where is the mortgage fraud?The fact that the OP has chosen to give their parent £200 a month is a private arrangement and therefore completely irrelevant as far as the mortgage company is concerned. It is also well below the £3000 per year gift limit so there are no tax implications.I'd bet there are parents up and down the country who have given their children money towards buying a house and why shouldn't they? Who cares? The mortgage company is getting their repayments and the parents/children's financial affairs are their own private business.
If the mortgage company knew it was a loan, they probably wouldn't have given them the mortgage, therefore they obtained money by deception, the definition of fraud.0 -
I disagree because you cannot know that for certain. Let’s assume it genuinely was a gift and the declaration was honest and true at the time. Now imagine that the parent’s circumstances somehow changed. Are you seriously suggesting that the OP would not be able to ‘help out’ their parents without committing mortgage fraud?1
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