Hi

Were in the process of selling our family home for £500,000 my widow father would like to give me £100,000 for deposit on a new flat, what would be my tax liability?

If my father was to put £100,000 directly into sellers account rather than mine and I was to put my father as co-owner of flat will their be tax problems here?

Thanks

Is your Father gifting this £100k to you, or is he actually purchasing a £100k share in the flat. ?

Did your Mother pass all of her estate over to your Father. ?

Any tax implication depends on your reply.

I would expect that if your father is co-owner, he will be subject to capital gains tax when you sell the flat. If he makes a gift of £100k there could only be some inheritance tax if your father dies in the next 7 years.

Hi

"Is your Father gifting this £100k to you, or is he actually purchasing a £100k share in the flat. ?"

Which method results in least amount of tax liaibility?

My mother died some time ago and they never had a will also propetry was always in my fathers name.

thanks

There will be no inheritance tax implication if your Fathers estate does not exceed his NRB which is currently £312k for a single person, but as he can also claim your Mothers unused NRB this effectively doubles his NRB meaning he could leave up to £624k without being liable for inheritance tax.

If he gifts you £100k there is no tax implication on this outright gift, even if he died before 7 years as he has not exceeded the above allowance.

If he buys a share of your flat and lives there as his main address then there is no Capital gain tax to worry about........ but if he buys a share and never lives in the flat, his share would be subject to CGT when the flat is sold.

It is better that he gifts you £100k, as it will not complicate his share of the flat. i.e. if he dies he would have to leave his share of the flat to you in his will, or to have bought the flat with you as "joint tenants"......rather than "tenants in common".