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Sam
Sam, Accountant
Category: Tax
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We re thinking of paying off my sisters mortgage, at around

Resolved Question:

we re thinking of paying off my sisters mortgage , at around 60k , what tax implications are there to us and to them if we do this
Submitted: 20 days ago.
Category: Tax
Expert:  Sam replied 20 days ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 20 days ago.

Hi

Thanks for your patience

No direct tax implications for either of you, (as this will be treated as a gift so not liable to tax) just the consideration of Inheritance tax on your estate (you state we are paying off- so I assume you have a partner so this applies to them also)

The implication will arise if you do not survive more than 7 years from the date of making this gift as then it will (some or all of it) have to be added back into your estate for Inheritance tax consideration

However if your estate (including this gift) is less than £325,000 then you are exempt from Inheritance tax anyway

I have added a link re gifts and Inheritance tax for your information here https://www.gov.uk/inheritance-tax/gifts

Let me know if you need any furtehr assistance with this topic, or if you have all that you need, then it would be very much appreciated if you could rate me for the level of service I have provided, or click accept.

Thanks

Sam

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