Inheritance help !!!

shelby_

Advice needed ! My dear elderly father has decided to give me my inheritance early as i wish to buy myself a house in the next year ! 10k in the form of cash ! He is one of those typically elderly people that have been storing away his pennies for years for a rainy day ! Hes drawn it all out and now wants to happily pass it over ! He isnt clued up internet let alone bank transfers and this is his way ! So ! will this cause issues for myself ? I cant hop skip and jump into the bank with a large sum of money like that ? I have deposited 4 k so far but been reluctant to cash in the rest. Obviously i will have to pay tax on this ? What kind of tax ? When will i have to pay it ? Can someone please shed some light on what i can expect ?

tacpot12

Stop worrying. You can pay the money into your bank providing you can account for where it can come from. Ask your dad for the bank statement(s) that shows him withdrawing the money.
 
There is no tax to pay on it yet, but you should keep a record of it in case he doesn't live for 7 years. Depending on the rest of the value of his estate and when he dies, you might need to pay some inheritance tax on it. How much is his house worth?  

Jeremy535897

There is no gift tax in the UK. In the extremely unlikely event that your father has made gifts of at least £325,000 in the past, before giving you £10,000, and died within seven years of making those gifts, there might be an inheritance tax liability on the gift to you, on his death, but I cannot imagine this would be likely.

Depositing large amounts of cash can make banks consider the anti money laundering rules, but on sums like this it is not likely.

shelby_

There is no house ! he lives witg his girlfriend ! All he has is cash to give when he passes one day

theoretica

However, when you come to buy your house you will probably need to show where this money came from - and likely need his help for this.

shelby_

Yes , We are aleady working on this , To write up a letter declaring his wish and so its a signed document

getmore4less

How long before you buy a house?

Just start spending some of it and save more from income 
Just keep the essentials going through your accounts so they don't stop start.

Depending how long you have you could have recycles quite a bit on discretionary cash spending.

shelby_

looking at a year minimum id imagine