My good friend has come into some money and wants to gift me £100K. I would use it to pay off some of my mortgage.
| Related: | Personal Finance•Tax•Inheritance Tax |
I understand the 7 year inheritance tax rule, is there anything else I need to be aware of and should I declare this to the Inland revenue?
Answers (1)
Hi grahama16 and welcome to the forum.
You are a lucky chap to have such a benevolent lady in your life! My understanding here is that your gifting is free of taxation subject, as you say, to your girlfriend surviving a further seven years. There is no need to inform HMRC. The only other consideration would be if you are currently in receipt of means tested benefits such as Income Support or Council Tax Benefit, then you would need to let the appropriate authority know.
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How do you know grahama's friend is a lady, Snoops? ;-)
We are getting better at reading between the lines considering the kind of questions we have been responding to :-)
Fruitcake ... it was wishful thinking I guess ... I just saw 'g' and 'f', the rest is history. I could have said 'lad(y)', then my answer would have bi-functional, bi-sexual and tri-again!
Apologies grahama16, gender purely by assumption ...
I was just about to ask that, fruits but you beat me to it. Great minds think alike!