IHT and cash gifts

IHT and cash gifts

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Are there any Iht implication if cash is gifted for recipient to buy a property but then wanting the recipient to make a monthly payment back to donor in return?
does it make any difference if it cash that is gifted or property bought by donor and then gifted

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By duncanedwards
29th Jan 2015 23:15

I don't think so.

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By WhichTyler
30th Jan 2015 08:12

Technically

that sort of gift is called a 'loan'

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Replying to weuk:
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By MattG
30th Jan 2015 10:05

Mortgage?

WhichTyler wrote:

that sort of gift is called a 'loan'

Indeed! Also if this loan has been used as a deposit to obtain a mortgage then the lender would want to know about it and may well refuse to lend, as they don't tend to be keen on people borrowing for a deposit (sort of defeats the purpose of a deposit really, even if the additional loan is only on fairly lax bank of mum and dad terms!)

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By johngroganjga
30th Jan 2015 08:52

I agree that it looks more like a loan than a gift.  But we don't know how the monthly payments relate to the amount of the initial advance.  It could be partly a loan and partly a gift.

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By The Minion
30th Jan 2015 17:56

could be

a reservation of benefit?

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