Gift Tax

J

JQ2002

Registered User
Messages
135
Hi there,

My query is that my Sister gave me a sum of money to look after while she went travelling for the year. As it was late in the day, she just lodged it to my account and I opened a high interest deposit account (in my name as she was gone away) and left it there.

Anyway, while she was away I decided to buy a house and decided to use my Sister's money as evidence of funds. She consented to this while she was away. However, that mortgage provider did ask where the funds came from and I said I was 'minding' them for my Sister. They then asked that she provide confirmation that she has no interest in the property and that the funds were advanced to me as a gift, which she did and the mortgage provider is happy with this.

The funds still remain in my name and once my property closes the funds will be returned to my Sister as my financial conditions have changed and I can afford to do so.

I am now concerned that this is a gift for tax purposes and has already eaten into my gift tax threshold.

Any views? Thanks.
 
Have you asked for your solicitor's advice? I would have thought that it is, in effect, a loan that you will be repaying.
 
Sounds like a loan alright as you are intending to repay it. Maybe Bertie could shed some light on this dilemma!!
 
So if somebody signs a confirmation to a bank that an amount of money is a gift then the Revenue may still consider it to be a loan?? Something about that doesn't sit right with me.

I think CCOVICH is right, you should ask a solicitor what the actual legal position is.
 

Once house is closed I'll approach Solc and see what the deal is.
 
It's not a gift if you're giving it back to her as there's no benefit to you. It ain't your money to spend.

If she allows you keep the interest accrued on the money then THAT would qualify as a gift.
 
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