Rumour has it that HMRC is eyeing up the ‘Bank of Mum and Dad’ for a serious tax shake-up! Under potential new plans, the much-loved £3,000 annual tax-free gift allowance might be getting the chop. Critics are sounding the alarm, calling it a move that could label our generous grandparents as unintentional tax dodgers overnight!
Financial experts are raising their eyebrows, with Scott Gallacher from Rowley Turton calling the idea “daft”. He warns that such a move could drive families to find sneaky ways to sidestep what many already view as an unfair tax. Benjamin Beck, a savvy financial coach, highlights how essential these family gifts are, making a huge impact on everything from securing a mortgage deposit to keeping up with life’s expenses. Cutting the allowance could cut off vital support when it’s needed most.
In a passionate plea, David Stirling from Mint Wealth emphasised how these “transfers hold families together” by easing everyday financial burdens. Meanwhile, Anita Wright at Ribble Wealth is urging families to start planning now, before any changes hit. She suggests making use of current allowances and considering options like trusts and succession planning.
This rumoured policy could bring big changes to how we support each other across generations, touching everything from mortgages to everyday living costs. Remember, if you’re using the ‘Bank of Mum and Dad’ for a house deposit, you’ll need to show formal evidence that it’s a gift, not a loan, and be sure it’s documented properly.
Stay ahead of the curve and keep an eye out – this could impact us all! What do you think about these potential changes? Share your thoughts below!