How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam, Accountant
Category: Tax
Satisfied Customers: 14153
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Type Your Tax Question Here...
Sam is online now

I have received £130,000 from the sale of our former matrimonial

This answer was rated:

I have received £130,000 from the sale of our former matrimonial home, as it wasmy principal residence I understand I do not have a tax liability on this amount.
My Daughter & Son in law are wanting to purchase a property but are unable to raise finance due to CCJ's and bad credit history etc, I want to give them £50,000 to help them out is there anything to say I am not allowed to do this? is there any tax due from either party?




Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.




As long as this property was your main residence up to the date of sale, or within 18 months (if you sold after 06/04/2014 and if prior to 06/04/2014 - then there is the last 36 months exempt) of having moved out of it, then you are correct you have no tax liability.



As far as the gift is concerned, this will be a consideration for Inheritance tax only, if

1) You do not live for more than 7 years and

2) Your total estate including the gift is more than £325,000



If you do live for ore than 7 years OR your estate (which includes this gift) is less than £325,000 then there is no Inheritance tax liability to consider either.



And your daughter and son in law, do not create a tax liability on receipt of this money, as gifts made, and not liable to income tax.

So they have no further concerns on the receipt of this lump sum.



Feel free to ask any follow up questions on the above information





Sam and other Tax Specialists are ready to help you