Parents can avoid inheritance tax when helping kids

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Parents can avoid inheritance tax when helping kids

Inheritance tax should not be an issue for parents helping their children to get a foot on the property ladder, according to Bestinvest.

Peter O'Donovan, a mortgage manager for the firm, said that so long as the property is in the child's name and they are paying the stamp duty, then they will not be liable to pay inheritance tax.

That still applies even when parents use their income to assist with mortgage payments.

He added that most parents prefer to let their children "stand on their own two feet" and tend to just provide the deposit money in a lump sum.

Recent research from Abbey Mortgages showed that 17 per cent of first-borns are given money towards their first home, compared to 12 per cent of second-born kids and nine per cent of third-born children.

However, although first-borns are more likely to get help with their deposit than their younger brothers and sisters they are only likely to receive about £3,346 to move into their first home, compared to second-born children who get on average £7,899 and third-born children who can hope for £9,715.
ADNFCR-323-ID-18472909-ADNFCR

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