Hi All
I'll bullet point below the outline of the question below. The benefit of someone's knowledge and experience would be gratefully received.
1. Mum & Dad own house they want to sell but this may take some time due to current housing market conditions.
2. They have identified a new build house they want to buy now that will cost £130,000 and they can raise £70k immediately.
3. Mum & Dad want to gift the £70k now (£35k each to son & daughter and their respective spouses). Son & daughter can raise the £30k each to make up the £130k needed to buy the house (70+30+30 = £130k) and then Mum & Dad can live there rent free until death.
4. Can someone tell me if there would be any problems with 'Gift with reservation' because of the reason for the £70k gift. I imagine POAT on £70k would be relevant but this would presumably depend on future valuation and the affect on any potential benefit if valuation more than £100k.
5. The other issue is PPR which would be lost if Mum & Dad don't own it but then again there would be 4 CGT exemptions to use. The Gift with reservation/POAT situation is the most concerning because I don't have experience of it.
6. Mum & Dad's total current estate is only around £200k.
Thanks for any replies
Regards