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TaxRobin, Tax Consultant
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Experience:  International tax
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After giving my son the deposit for a flat I have been

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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.

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