Offset mortgage / inheritance

molby10

Can anyone give me some advice on this please?

I have just started a 5 year offset mortgage with First Direct. If my parents were to give me a sum of money as an early inheritance and I used that to offset the mortgage am I risking having to pay 40% tax on it? Is there any way that it can be deemed a loan or made exempt from inheritance tax?

I've looked into it a little bit but it seems to be a minefield of laws and loopholes that I can't get my head around!

Thanks.

mr_mortgage

You might want to post this in a tax forum, rather than a mortgage one - but from what I recall as long as they don't die within a specific period (5 years?) you are not deemed to have inherited it, and it is simply a gift.

If your folks want to leave you money in a tax advantageous way, you should seek advice from a qualified financial advisor or accountant who will be able to advise you on the most tax beneficial methods of transferring large sums of money.

Mr_helpful

As long as parents dont5 kick the bucket in 7 yrs you should be OK as its just a gift