What are the Tax Implications when Gifting a Deposit for a Mortgage?
Things to know about the tax implications of gifting cash to a relative
- If you die within 7 years of gifting cash to a relative the recipient may end up paying inheritance tax on the money you gift them!
- You can gift up to £3000 per year without qualifying for inheritance tax
- You can carry any “unused” portion forward by one financial year, meaning an individual can make gifts totalling £6000 if you did not make any substantial gifts the year before
**We highly recommend before gifting a deposit, you should seek professional tax advice from a professional!
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