avoid tax on donation...

[spaced]

My father has his own business. Some clients pay him by cheque and some by cash. As notmal some cash paid work was not put though the books. my father gave me �20,000, which he saved as cash over many years in his loft, as a loan for a house deposit.

I can now pay him back, thanks to a Inheritance (tax paid). Unfortunately I can not pay it into his bank or give him a cheque as the tax man and bank would want to know how my dad gave me this money in the first place. Any ideas how I can get this back to him without causing a stir?

[dzug]

In cash, in dribs and drabs, is the only way I can think of.

[Solarjunkie]

As below, plus you could pay for his holiday, that sort of thing.

[dzug]

On further thought there is nothing to stop you making him (personally, not his business) a GIFT of this money - no connection with previous loan. If the taxman asks where he got it from then all he has to say is that his devoted son came into some money and decided to give him some of it.

There are no tax implications unless you die within 7 years when it will go into your Inheritance Tax equation.