Gift from parent

oldernonethewiser

Have a read of this

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

Keep_pedalling

WilliamCostiganJnr said:

marcia_ said:

WilliamCostiganJnr said:

Very interested in this thread. My elderly father wants to gift myself and brother some money. Inheritance tax wouldn't be an issue but the worry is him needing care in the future. In fact that's the reason he wants to gift us something now, so it doesn't line the pockets of a care home owner down the line.

 Which means he will be reliant on the cheapest possible service organised by social services. 

 Do you really want him to not have the best care so you can have your gift? 

Honestly it's something we've discussed recently and yes that's how he feels, as do I and my brother. We (that's all of us) don't like the idea of him working hard all his life for everything he's worked for to go to care home boss and let's be honest that's where it goes as the staff don't see a great deal.

So you want the rest of to pay for his care so you can go out and spend his hard earned on yourselves. 

I have experience of trying to get the care someone needed via the LA and it was difficult to get it when it was needed and when we finally did the choice was limited. This was pre Brexit and lockdown things are a lot worse now and the trend is going one way only.

No way are we going to give away the choice of who, where and when we get care if we ever need it.

elsien

Not a problem. If he needs care, look after him yourselves.
 Of course it may mean being up all night with him if he becomes disoriented to time/place, not being able to leave him at all because it’s not safe, needing two of you to use a hoist if he gets mobility difficulties or dealing with any distress if he doesn’t understand what’s going on  but as long as he’s not lining the pockets of a care home boss that shouldn’t be a problem for you. 

matty_bram

As I understand it, as long as the person giving the gift then doesn't pass away within 7 years of gifting it...you don't need to pay any tax.

But I do think you need to notify HMRC of the gift on your tax return.

NOTE: I'm not qualified to give advice on this, it is just what I remember from previously having dealt with a similar scenario. 

HappyHarry

matty_bram said:

But I do think you need to notify HMRC of the gift on your tax return.

No - as said above there is no tax on gifts in the UK and so no need, indeed no spaces, to put gifts on your tax return.

Mojisola

matty_bram said:

As I understand it, as long as the person giving the gift then doesn't pass away within 7 years of gifting it...you don't need to pay any tax.

But I do think you need to notify HMRC of the gift on your tax return.

NOTE: I'm not qualified to give advice on this, it is just what I remember from previously having dealt with a similar scenario. 

This only applies if the estate would be liable to pay inheritance tax and that doesn't seem to apply here.

If it was the case, it's the estate that would pay the tax, not the recipient (except in rare circumstances).

DigSunPap

I don't think that you have to pay tax on gifts here in the UK. So I don't see why there would be any issue.