I have had an enquiry where parents bought a house, the son resides in that house rent free. There has been substantial increase in the value of the house since purchase by the parents, they now want to gift the house to the son in parts over a number of years to minimize their CGT liability
I have never come accross this before , has anyone experienced such gifting. Are there any things to look out for ?
Thanks for your help
Replies (2)
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Yes this can be done and IHT comes into play. if not done so already parents would need to hold the property in 'tenants in common' and then transfer bit by bit (each ) over the next few/many years.
Read up on market value, series of transactions, linked transactions, SDLT, minority interest discounts .....