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Someone else paying off credit card

5 replies

Hoverfly1 · 02/05/2025 15:04

Hello, looking for some advice if possible. My dad recently received a tax free death benefit payment after a family member passed away, he had kindly said he would like to pay off my cc with some of the money as he knows I am struggling with it at the moment. This would be around 5k.
Does anyone know if he can just pay this directly to my cc without any tax implications for either of us, and would I have to tell UC and have it recorded as income?
Thanks 😊

OP posts:
PedigreeSort · 02/05/2025 15:06

Edit mussed the UC elements and I have zero knowledge of UC so withdrawing my comment!

XenoBitch · 02/05/2025 23:39

That is so nice of your dad to offer to do that for you. It wont affect your UC. He will be paying off one of your debts. It wont be classed as income.
I don't know about tax implications but if it is £5k then I can't see it affecting much anyway.

Musicaltheatremum · 03/05/2025 08:51

Only if his estate is over £375000

Amoneyone · 03/05/2025 08:52

If he hasn't made any other gifts you can also carry forward £3k gift allowance from the previous year giving £6k total allowance for inheritance tax.

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