Parental Moneybox

[msemma]

I've heard of parents buying houses for children to live in, not just while they are at university but when they are self supporting, and it seems really popular now for parents to give children the deposit for their first home. How does this work? Surely there are tax implications, when you can't give your children more than �3,000 in cash per year? How do people get round this? And what if parents buy children cars and things? Shouldn't they be declared for tax somewhere?

[dzug]

There are only tax implications if the parents die within 7 years of making the gift. The gift then falls within their estate for inheritance tax calculations.

There is otherwise no tax on gifts in the UK.

[sickmoth]

Something else to think about.....................If someone owns more than one property they may be subject to capital gains tax.