Dad Paying Mortgage

cball93

Hi,

I'm not sure if this is the correct forum but here goes.

My Dad is (unexpectedly) currently living with me in my house that I purchased last year. He has very generously offered to cover my mortgage and bills so i can build my savings back up. 

Im not sure how long this arrangement will last for, probably a year or two until he buys his own place once his divorce has finalised.

Is there any tax implications i need to think about? He will simply be transferring me the amount per month (around £800). 

Thanks

MovingForwards

Tax isn't paid on gifts in the UK.
There may be IHT implications if he dies within 7 years of them.
Be aware of your dad gaining a beneficial interest in your property because of paying the mortgage.

Be careful about becoming dependant on receiving the cash and having bills paid for you, it will be a shock when it stops.

Maybe you pay your bills / mortgage and ask your dad to transfer the money straight to a savings account.

cball93

IHT noted and he doesn't have any interest in claiming a stake of the property. 
Its in his interest too as rent in my area is around £800pcm so he is saving but helping me out in the process.

Many thanks

FaceHead

Your dad is contributing board, just like a grown child might in a parent's house, only the other way around.

Don't over think it and start worrying about income tax, rent a room allowances and all that nonsense. Just get on with it. 

It's still your mortgage and your bills, so you should pay them. If your dad gives you something to help that's great, but don't be having him pay things directly, as you then lose visibility and control over the bills and mortgage which are your responsibility. 

cball93

Thanks! I just didnt want something unexpected to land on me down the line. Seems like ive got nothing to worry about

dimbo61

You have to pay full council tax as Two adults in the property.