Tax on gift from child to parent?

[t1grm]

Yes you read the subject correctly! I'm 46 and want to gift my 76 year old mother some money to buy a car. I've googled parent child gift tax and obviously everything that has come back is about parents gifting to children and inheritance tax. I want to do it the other way round. Does anyone know what the tax situation is here? Are there any limits and does my mother have to declare or pay tax on the gift?

She's buying the car on a 4 year PCP so ideally I'd like to cover the payments for the duration of the finance. She's going to pay the deposit out of her savings and we'll decide whether to buy the car at the end of the lease (she'll be 80 by then so might not be driving). I'm assuming monthly payments would not be a good idea. Maybe quarterly or annually would be better?

[Eric Mc]

You can give what you like to who like and there will be no tax.

However, don't die for the next seven years.

[t1grm]

Eric Mc said:

You can give what you like to who like and there will be no tax.

However, don't die for the next seven years.

Thanks for the response. I read about a £3000 limit but I assume that's for inertance tax so irrelevant (assuming I don't die in the next seven years like you say).

[Kev_Mk3]

Would it not be better for you to just buy the car rather than giving her the money?

[Zoon]

Kev_Mk3 said:

Would it not be better for you to just buy the car rather than giving her the money?

Seems a bit obvious.

[Kev_Mk3]

I am thinking inheritance tax implications. Maybe it wont matter at all but just a thought

[Zoon]

Kev_Mk3 said:

I am thinking inheritance tax implications. Maybe it wont matter at all but just a thought

No I quite agree with your original post, if he buys the car and allows his mother to drive it then I cannot see a tax implication.

[Jockman]

Yup the owner and registered keeper can be different.

I think OP may be being over cautious.

[t1grm]

She's buying it on PCP. I don't particularly want it loading up my credit rating. Apart from which I already have a car on PCH so they might not approve another.