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Cash purchase of property
vejs
Posts: 3 Newbie
I have put my offer forward which has been accepted but short by £13000 my daughter has kindly offered this to me. Can she just transfer this cash into my account or will there be difficulties for her by doing this.
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Comments
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Is she lending or gifting it?
They're unlikely to accept the former. The latter, she'll have to declare is a gift, probably by letter to the lender.2024 wins: *must start comping again!*1 -
The OP says it is a cash purchase, so no lender involved. Whether this is a loan or a gift there are no issues for her in doing this apart from, in the case of a gift, keeping a record of the gift for IHT purposes.hazyjo said:Is she lending or gifting it?
They're unlikely to accept the former. The latter, she'll have to declare is a gift, probably by letter to the lender.2 -
And bearing in mind that the solicitor will need ID and bank statements from everyone contributing, in order to verify the source of funds.2
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Missed that 🙈Keep_pedalling said:
The OP says it is a cash purchase.hazyjo said:Is she lending or gifting it?
They're unlikely to accept the former. The latter, she'll have to declare is a gift, probably by letter to the lender.2024 wins: *must start comping again!*1 -
Thanks to ALL for your replies. I am a cash purchaser so my daughter was just going to send proof to my Solicitor ie bank statements and earnings etc. This is not a loan but was just going to mention in my Will that daughter will get better share of property than my son.
I expect somewhere down the line whoever unfortunately goes first may be hit with inheritance tax for the £13000 cross that bridge later on! She is just worried re tax and would it be better to say gifting.0 -
The is no gift tax in UK. Other countries may be different. Is your daughter UK resident for tax purposes?
If so, the only tax implication is, if she dies within 7 years of giving you £13k, it ill be added back to her estate when the value is calculated for IHT purposes.0 -
If she is not in a habit of making gifts then £6K gift now and rest as a loan with £3k knocked off each April as a gift then.
Down to £1k after 16 months
depending on the size of various estates a loan may be a better option anyway if she is going to get it back eventualy0
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