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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4984
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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my son is buying a flat with his girlfriend we have transferred

Customer Question

my son is buying a flat with his girlfriend we have transferred money from our account
for his share the solicitor is now saying it should have come from his own account and we will have to gift it to him it is a large sum what are the tax implications for us
Submitted: 4 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 4 years ago.

Hello, if you have any questions or need further clarification after reading my answer please let me know.

 

Thank you for your question..

 

This gift to your son is regarded as a potentially exempt transfer for inheritance tax purposes. If you survive for seven years after making a gift to someone, the gift is generally exempt from Inheritance Tax, no matter what the value. You should keep a record of the gift and the date gift given for future reference.

 

More information on seven year rule - 'potentially exempt transfers' can be found here

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#4

 

If you need more information please let me know before you rate my service.

 

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

 

Expert:  taxadvisor.uk replied 4 years ago.

Hi

 

I notice you have viewed my response to your original question about tax implications of giving your son a large sum gift (JACUSTOMER-dsnfu29l- Last Viewed on 21/06/2013 at 11:25).

Just checking to see if you have any issues relating to your question that I may not have addressed. Please let me know if I can be of further assistance.

 

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.