Being gifted 100k, now what?

[Mellomarsh]

Okay, completely first world "problem" but here we are...

My dad is about to have a pretty big payday (work related and not inheritance). So because of this he has said he would like to gift my husband and I £100k which I am pretty speechless about! We have a young family and are in the process of moving house so this will be a massive help (not enough to clear our mortgage but obviously a significant dent).

Anyway, so what I wanted to ask wise MN's was are there any tax implications for us if we are gifted this amount? And should we use this to clear our mortgage? Especially with rates increasing as they have done. We don't have any other debt, and roughly 10k in savings.

Thanks.

Max out the ISA and premium bond entitlement for your children. This will prevent a chunk being lost in the event of a divorce. Pay down a big chunk of mortgage and max out your pensions.

My mum gifted us a large sum when we got married but died 2 years after so we got clobbered for tax especially as she also left a property. The accountant and solicitor dealt with it all and we were advised to pay off our mortgage. It was a release and a relief, that sort of phew feeling.

Yes it does include paying into trusts . The nil rate band is 325k not 350k. It also resets every 7 years. Your dad also has an annual exemption of 3k per year . How much is he looking at? IHT can be massively reduced through planning for someone around 60. Tax accountant here