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Higher education

Talk to other parents whose children are preparing for university on our Higher Education forum.

Tax situation for students...

5 replies

WordleInTwo · 17/01/2023 11:06

Like a lot of parents we are paying our DS's rent while he is at uni and he is living off his student loan.

As his rent is £600 a month, we are paying him £7,200 a year and with the student loan he'll be 'earning' over the tax threshold. We haven't really thought about this, but wondering what his tax situation is and what other parents/students are doing?

OP posts:
LIZS · 17/01/2023 11:08

There is no tax liability on it.

crazycrofter · 17/01/2023 11:33

The loan isn’t taxable income and neither is your gift to your son of paying his rent. Students potentially pay tax on any earned income, if they earn over the personal allowance in a tax year.

Teriyakieverything · 17/01/2023 13:18

I don't think the situation as described in the OP is subject to income tax.

MoleAtTheCounter · 17/01/2023 13:30

As others have said - there is no income tax liability. The only possible tax implication is Inheritance Tax - www.gov.uk/inheritance-tax/gifts

WordleInTwo · 18/01/2023 15:17

Thank you all x

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