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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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I have 4 granddaughters, 2 are ready to buy their first house.

Resolved Question:

I have 4 granddaughters, 2 are ready to buy their first house. the 2 younger ones in a few years time. my wife and I would like to give them £10,000 each towards a deposit.
would they be liable to pay income tax on it.
I am 80 years old my wife is 75
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

They would definitely not have to pay income tax, and they might not have to pay capital gains tax if you could prove that the gift was part of your means.

However making such a gift would be considered a "Potentially Exempt Transfer". This means that if you died within 7 years of making the gift they may be liable to pay inheritance tax on the gift.

There is currently a 0% rate tax band of up to £325,000 so if your estate did not exceed this much for either your or your wife you may be able to give them the money sum way between the two of your with out attracting a tax charge.

I look forward to hearing from you.

Kind regards

AJ
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