Gift deposit with a twist? Advice please

[SanRoxi]

Hi, I'm completely new to this forum and I have a question which might or might not already have been posted. Here goes.

My father inlaw wants to sell his house (around 140-130k) and use (gift) me and my wife the money to put down as a deposit for our house so we will only have a small mortgage of around 50-60k. And to add to this he will live under the same roof as us but me and my wife would be paying the mortgage.

Am I correct in thinking this is all fine with it being well below the 325k IHT threshold ? (Legal etc)

Also would he need to transfer the money he gets for his house to a joined bank account (in me and my wife's name) or would he be able to put the money directly down as a deposit from himself ?

I'm sorry if I'm coming across as abit of a noob, i have no experience as we are first time buyers plus I'm foreign so there is a slight language barrier

Thanks in advance for any advice

[SanRoxi]

Hi, I'm completely new to this forum and I have a question which might or might not already have been posted. Here goes.

My father inlaw wants to sell his house (around 140-130k) and use (gift) me and my wife the money to put down as a deposit for our house so we will only have a small mortgage of around 50-60k. And to add to this he will live under the same roof as us but me and my wife would be paying the mortgage.

Am I correct in thinking this is all fine with it being well below the 325k IHT threshold ? (Legal etc)

Also would he need to transfer the money he gets for his house to a joined bank account (in me and my wife's name) or would he be able to put the money directly down as a deposit from himself ?

I'm sorry if I'm coming across as abit of a noob, i have no experience as we are first time buyers plus I'm foreign so there is a slight language barrier

Thanks in advance for any advice

[pawncob]

As long as his total estate on death is under the threshold (including the gift) then there will be no IHT liability.
If the estate is chargeable the gift will be included as it's a gift with reservation.

[AdamS93]

This is potentially caught by the Pre-Owned Asset Tax (POAT) charge - an income tax charge may be imposed on your father.

Best to sit down with an adviser.

[maths]

Shouldn't be a gift with reservation if gift from father a "no-strings" gift.

Pre-owned asset provisions avoidable if father also acquires an interest in the property.

Say proposed gift 140k and mortgage 60k means house purchase cost say 200k.

Let father have 5% of property in which case he keeps 10k for his 5% from his sale of 140k and gifts you the balance 130k.130k to be transferred into your account (not one jointly with father).