Hello,
My H+W client wants some IHT/CGT work done now. The bugger couldn't wait 6 or 7 weeks but hey-ho.
Looking at a piece of land/yard worth £400K which is rented to others so no BPR and it's standing at a six figure gain.
Do transfers into (what was formerly) an IIP trust now mean no CGT AND no IHT??? Surely it can't be that easy.
Transfer property into a trust, for their son. He will have the rental income (ie the life tenant - old terms of course) and will be the beneficiary?
NO IHT as covered by 2 x NRB.
No CGT as s260 - NOT settlor interested please note.
Income tax on rental income at just 20%, albeit assessed/passed on to life tenant to teh same 40% as would be the case.
And then in 1 year, say, we transfer the property directly to the son. S260 again?
Surely not???
This is what we used to do with investment assets when routing through an old-style disc trust, but as these now have 50% tax I am loathe to use.
Am I missing something easy?
Many thanks
ps - 65 TRs to go! (just me BTW)