One Time Gift to Family Member

MintyCyrmu

Hello all

I have a family member who is near the end of their mortgage and have no income, the plan is to gift that member a one time lump sum of £15k so they can clear their mortgage and not have their home taken from them.

What are the legalities around this with regards to tax etc?

I've searched the government website but can't find anything - maybe not searching for the right thing.

Thanks

Flugelhorn

you can give money to whoever you like with no tax attached - however if your estate is in IHT territory and you die withing 7 years then some of the gift may be considered part of the estate and liable to IHT.

MikeJXE

You either do it or your don’t it depends what your priorities are. 1 gave my 4 grandkids 10,000 each last Christmas and I’m 83 years old. Not in iht territory though. 

MintyCyrmu

Thank you @Flugelhorn very helpful, a direct answer to my query without embellishment.

Fantastic 👍👍👍

Brie

fyi - highly unlikely that any bank will try to repossess for the sake of £15k.  They might make threatening noises but would likely just settle for a token payment of perhaps £1 a month or similar.  But obviously clearing it so there's no fuss would be nice for them.  

Keep_pedalling

Flugelhorn said:

you can give money to whoever you like with no tax attached - however if your estate is in IHT territory and you die withing 7 years then some of the gift may be considered part of the estate and liable to IHT.

But still less tax than if you did not make the gift, and it comes out of the estate not clawed back from the person receiving the gift.

Jeremy535897

There is a detailed discussion of some of the complexities here:
https://trustsdiscussionforum.co.uk/t/grossing-up-on-failed-pet/13229/4