What you need to know before giving your child a house deposit
The research, from May this year, found 173,500 first-time buyers were given assistance in 2024 – around half of the total number to have bought their first home – with gifts averaging £55,572 each.
Parents stumping up large sums of cash is on the rise. The Bank of Mum and Dad (Bomad) has provided £38.5bn of assistance over the past four years, up 71pc compared to the previous four years.
Despite it being so commonplace, giving money to your children isn't always straightforward. How much should you give? When should you give it? Could you end up accidentally landing your offspring with a tax bill?
Here, Telegraph Money answers these questions in a full guide to the Bank of Mum and Dad.
How much should you give your children?
When should you give the money away?
What do lenders need to know about a 'Bomad' deposit?
Do children have to declare the gift to HMRC?
What about inheritance tax?
How much should you give your children?
The golden rule here is that any contribution should be affordable – this means it will vary from person to person. Crucially, you need to ensure any gift won't put your own retirement or financial stability at risk.
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