Family cash gift

barry7153

I was given a large cash gift by my mum so I could help my son remortgage his house. He no longer needs it. Can I return the gift without tax implications?

Mark_d

I don't see any problem with this.  Essentially you borrowed the money, gained no benefit from it, and returned it.

FlorayG

Unless the gift was made with a legal document and a solicitor was involved you can just return it as it was in effect a loan; I assume this was the case because the gift was made to you, not to the person who actually thought they needed it

silvercar

Does your Mum need the money? If not it may be prudent to hold on to it for now. It could aid future inheritance tax planning.

Albermarle

In the UK there is no tax on gifts, so no tax on returning them either.

As said by the previous poster, if your Mums estate was going to be reasonably large and potentially liable for inheritance tax and she was going to leave you money in her will, then could be some sense in keeping the gift ( so getting your inheritance early) .
Then if she lives 7 years from gifting the money then it will be out of her estate for IHT calculation purposes.