taxation on monetary gift

hockey12 | 19:27 Mon 09th Apr 2007 | Personal Finance

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A friend has just offered to pay off my mortgage as a gift, am I liable to pay any tax on this if he does? My mortgage is around �100k.

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Your friend needs to live for at least the next 7 years to avoid an IHT liability.

The IHT liability is not yours - it's your mates estate that will have to shoulder this burden.

Never mind that..... What an amazing friend!!!

Look after that one - you won't see generousity like THAT twice in a lifetime!!

Question Author

Thank you all for your answers, yes it is an amazing friend. And we hope that they will be with us for at least the next 40 years.

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