‘Bank of mum and dad’ grows

TURNING to the “Bank of mum and dad” could become “more common” as the cost-of-living crisis mounts, an expert has said.

Lawyer Grant Johnson said rising bills could mean that increasing numbers of parents “want – or need – to give their children money”.

But he warned those donating significant sums of cash could “come at a cost” in terms of inheritance tax.

In such situations he said advice should always be sought in order to avoid “potential inheritance tax implications”.

HM Revenue and Customs rules set out that cash with a value of up to £3,000 can be given tax free each year, although different limits apply if money is being given towards wedding costs.