Help on to housing ladder 'is tax free'

An independent financial advisory firm has stated there are no tax consequences for parents who give help to their children to pay for their first homes.

Peter O' Donovan, mortgage manager at Bestinvest, said as everything was done in the child's name there would be no clear link with the parents and thus no inheritance tax as a result.

He added: "Even when the parent uses their income to assist [with mortgage payments], the mortgage might be in three names but the property will just be in the child's name."

Many young people struggling to get on the housing ladder may turn to their parents for financial help.

However, recent research by Abbey found that this was more available to the eldest children, with 17 per cent of firstborns getting help compared with 12 per cent of second children.

Those unable to get this sort of help may wish to examine the self build option.



© Adfero Ltd