My grandparents are gifting me £7000 towards the cost of buying my first home. Depending on the price of the house I buy, this will probably go towards the deposit, fees associated with buying a house and things such as furniture etc. for the house.
For example, if I purchase a house at £180000 with the current circumstances I would need a 15% deposit at £27000. If I have £25000 of my own money then £2000 of the gifted £7000 would go towards the deposit and the remaining £5000 would go towards fees and furniture if there is any left over.
However according to the GOV.UK website only a maximum of £3000 can be given each tax year as part of my 'annual exemption'. It then goes on to say that tax on gifts starts at 40%, reducing down to 0% after 7 years before their death.
So would this mean if my grandparents passed away within 3 years I would have to pay 40% on the £4000 (£7000 less the £3000 'annual exemption') so £1600, reducing as time goes on?
Also how would this work if only one of my grandparents passed away?