Quizzes & Puzzles36 mins ago
20 Grand In Gift
My mother has given a family member 20 grand in 2 months.
She says initially it was a loan but admits it's unlikely to be 'called in'.
Is there anything we need to be aware of tax wise or a declaration needed.
Thank you
Answers
No best answer has yet been selected by DDIL. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.I think it should be clarified in writing as to whether it is a loan or a gift. If it is a loan it would still form part of your mother's estate when she dies even if she survives more than seven years and would be included in any assessment if there is a liablility for inheritance tax.
If it was a gift there should be evidence of this and this should specify the dates the payments were made so that there is a starting point for the seven year period.