Gifted Deposits

[Rabbo]

My parents are planning to sell up and move with myself and fiancee very keen to buy their house. The house is valued at approx. £300k and parents would be willing to gift us approx. £100k as my proportion of my inheritance (got a younger brother and sister). I have some basic questions that I'm hoping someone can answer before I look into it any further.

Would we be paying SDLT on the full £300k?

Would the IHT implications only kick in if both parents died within 7 years?

Would lenders require a cash deposit from us in addition to the gifted element (we could raise £20k but would prefer to keep this)?

I assume there are no CGT implications for parents since this is/was their main residence?

Anyone have any experience of doing something similar?

[Revisitph]

Re IHT - currently they'd have £650k allowance between them, so unless they've a lot of other assets apart from the house then there is a big cushion there. Assuming married / CP the first to die can leave everything to the second in their will IHT-free, and their £325k can then be rolled up with the second's.

Depending on the way you (and others) vote and the manifestos, the IHT limit could rise to £1M after the next election.....

[Sarnie]

Rabbo said:

My parents are planning to sell up and move with myself and fiancee very keen to buy their house. The house is valued at approx. £300k and parents would be willing to gift us approx. £100k as my proportion of my inheritance (got a younger brother and sister). I have some basic questions that I'm hoping someone can answer before I look into it any further.

Would we be paying SDLT on the full £300k?

Would the IHT implications only kick in if both parents died within 7 years?

Would lenders require a cash deposit from us in addition to the gifted element (we could raise £20k but would prefer to keep this)?

I assume there are no CGT implications for parents since this is/was their main residence?

Anyone have any experience of doing something similar?

Yes you would be paying stamp duty on the full £300k as that would be the purchase price.

This would need to be done as Gifted Equity, not Gifted Deposit as no tangible cash is being exchanged. It's possible to do this but not with every lender and it can't be an under market value transaction eg your parents can't just decide to sell you the house for sub £250k to save you stamp duty...