Gifting an amount tax free ?

[fastbikes76]

I wont be mentioning that, It will be a gift as far as anyone other than myself and FiL are concerned. To be fair its one of those, pay me back if you can, when you can things anyways.

[r14jrj]

when I have received bank transfers from family / friends of thousands of pounds ive never had to declare anything? I simply just send them money and they do what they want with it and vice versa.

am I doing something wrong?

[Eric Mc]

fastbikes76 said:

I wont be mentioning that, It will be a gift as far as anyone other than myself and FiL are concerned. To be fair its one of those, pay me back if you can, when you can things anyways.

You should be clear from the start as to what it is - a gift or a loan.

This sounds like a loan to me.

If there is ANY expectation of a repayment, then legally it is a loan.

[fastbikes76]

Eric Mc said:

You should be clear from the start as to what it is - a gift or a loan.

This sounds like a loan to me.

If there is ANY expectation of a repayment, then legally it is a loan.

I get that, having been stuck in the renting cycle for 10 years we have struggled to raise a large enough deposit while paying out 150K in rent. So it was a case of him giving us the 20K to top up what we have saved, and then if we find ourselves in a position to do so , we can pay him back. If we don't find ourselves in the position the 20K will be deducted from our share of any Inheritance. He is not remotely fussed either way and there will be no agreements or docs drawn up between us.

[williaa68]

I know you say there is no documentation but it may make sense just to have a short email or similar that says £12k is a gift (2*6k each so no IHT risk) and 8k is a loan, to be repaid when circumstances allow. If they never allow, so be it but will be a lot easier than trying to draft some provision into the donors will to cover this eventuality. If you in turn in due course want to return the 8k loan and gift him 12k so be it but if the estate is above the IHT threshold and the donor is old you'd be mad....