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UKSolicitorJA, Solicitor
Category: Law
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Experience:  English solicitor with over 12 years experience
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I gave my son 230,000 to purchase a home for him and his daughter

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I gave my son 230,000 to purchase a home for him and his daughter after being left penniless by his wife are there any tax implications with this now he has an income

There may be an inheritance tax implication here on your part if the size of your estate is more than £325,000 and supposing you were to pass away within 7 years of the date you made the gift to your son.

The 7 year rule is as follows:

Any gifts you make to individuals will be exempt from Inheritance Tax as long as you live for 7 years after making the gift. These sorts of gifts are known as 'Potentially Exempt Transfers' (PETs).
However if you give an asset away at any time, but keep an interest in it - for example you give your house away but continue to live in it rent-free - this gift will not be a potentially exempt transfer.
If you die within 7 years and the total value of gifts you made is less than the Inheritance Tax threshold, then the value of the gifts is added to your estate and any tax due is paid out of the estate.
However, if you die within 7 years of making a gift and the gift is valued at more than the Inheritance Tax threshold, Inheritance Tax will need to be paid on its value, either by the person receiving the gift or by the representatives of the estate.
If you die between 3 and 7 years after making a gift, and the total value of gifts that you made is over the threshold, any Inheritance Tax due on the gift is reduced on a sliding scale. This is known as 'Taper Relief'.

The above is explained here

Taper Relief works as follows

Inheritance Tax is charged on gifts at 40%. But if the person died between 3 and 7 years of making a gift, you can apply what's known as 'Taper Relief' to the amount of Inheritance Tax due to reduce the amount payable.
Taper Relief reductions
Time between the date the gift was made and the date of death
Taper relief percentage applied to the tax due
3 to 4 years
4 to 5 years
5 to 6 years
6 to 7 years

The above is explained here:

Hope this helps
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Customer: replied 3 years ago.
What would he pay if I kept an interest in it and lived in the house
I Will revert shortly. Please leave feedback