Do you pay tax on a gift to your son to obtain a mortgage? 

Arthur Weller replies:  

No, you do not pay tax on a gift to your son to obtain a mortgage. A cash gift to your son is a ‘potentially exempt transfer’ (PET), and there is no immediate Inheritance tax (IHT) to pay. However, if you die within seven years of the date of making the gift, the cash amount you gifted will effectively be included in your death estate, and IHT will be levied on the amount you leave when you die, plus the cash gift. See HMRC’s Inheritance Tax manual at IHTM14512 (https://tinyurl.com/6k8wwp4f).