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RodneyA814
RodneyA814,
Category: Tax
Satisfied Customers: 121
Experience:  Expert
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I want to ask if I have to pay tax for money my son is

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Good morning, I want to ask if I have to pay tax for money my son is gfting me to buy a house
JA: Have you talked to a tax professional about this?
Customer: I am asking now
JA: Anything else you want the Accountant to know before I connect you?
Customer: No that would be it thanks

Hello there,

This is a Potentially Exempt Transfer (PET) and there will be no Inheritance Tax (IHT) liability so far as your son lived 7 years plus after gifting you the money.

If he dies before 7 years after the gift then the tax will be tapered depending on how long he lived as per below.

Years between gift and death Tax paid

less than 3 40%

3 to 4 32%

4 to 5 24%

5 to 6 16%

6 to 7 8%

7 or more 0%

Hope that answers your question but please let me know should you have further questions.

RodneyA814 and 2 other Tax Specialists are ready to help you