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Where Taxpayers and Advisers Meet

Receiving money from friends to buy house

RShah
Posts:1
Joined:Wed Mar 23, 2016 9:38 am
Receiving money from friends to buy house

Postby RShah » Wed Mar 23, 2016 9:51 am

Hi,

We are planning to buy a house soon and a few very good friends of mine (4-5 guys) would like to help by gifting around £3000 each towards the down payment.

1) Can they do so without any tax implications. I read somewhere that a cash gift up to £3000 is example from tax. Is that correct?

2) I will end up receiving around £12000 to £15000 in total from friends. Will this have any tax implication for me and will thus create any problems while applying for mortgage?

Kind regards
RShah

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: Receiving money from friends to buy house

Postby section 44 » Wed Mar 23, 2016 10:30 am

I read somewhere that a cash gift up to £3000 is example from tax. Is that correct?
Yes, provided it is the donor's only gift that year.

Should be fine. It's probably worth documenting the gift to help with any subsequent potential issues around it being something else (e.g. loan or part of purchase monies)


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