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 TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17849
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

After giving my son the deposit for a flat I have been

This answer was rated:

After giving my son the deposit for a flat I have been advised by his solicitor to seek independent legal counsel regarding the making of the contribution, the protection of my interest and the tax implications for me. The deposit is a gift and I will have no personal interest in the property. What are the tax implications?

Hello and thank you for allowing me to assist you.

People you give gifts to will be charged Inheritance Tax if you give away more than £325,000 in the 7 years before your death. The tax would be on your son if you were to pass away before 7 years has passed.

If there’s Inheritance Tax to pay, it’s charged at 40% on gifts given in the 3 years before you die.

Gifts made 3 to 7 years before your death are taxed on a sliding scale known as ‘taper relief’. Gifts are not counted towards the value of your estate after 7 years.

TaxRobin and other Tax Specialists are ready to help you