payment to son to buy a flat

jjaammeess | 12:39 Sat 26th Jul 2008 | Personal Finance

2 Answers

Hi I want to give my son the deposit to buy a flat. I have 5 months to do this.If I give him �1000 in cash each month into his savings account will he have to declare this as income.I gave my other son �6000 cheque(�3000 allowed from this year and last) so this is not available.Answers very much appreciated
Regards
James

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themas

It is not income. He does not declare it for income tax. It is a gift. The only tax implication is that it becomes a potentially exempt transfer for inheritance tax purposes. This means that if you die withing 7 years of making the gift there may be an IHT liability in relation to it - it depends on the total value of your estate etc.

jjaammeess

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Hi Thanks themas.I am retired so I worry a bit about IHT but who's to know if I put cash in in dribs and drabs
James

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