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Sam, Accountant
Category: Tax
Satisfied Customers: 14233
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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We re thinking of paying off my sisters mortgage, at around

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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

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


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

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.



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