CGT/IHT on gift of a home by mum & dad

CGT/IHT on gift of a home by mum & dad

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mum & dad (who live in their own house)wish to buy a house for son (approx £ 200k)what are the CGT / IHT implications?
Would it not be easier to just to give him the cash to buy his own house therefore alleviating possible CGT (would then only have a PET for IHT?
Would the situation differ if the house purchase was via a loan in the mum/dads name (possibly via remortgage say on their main home)?
WR

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By User deleted
07th Oct 2004 17:34

grant the son an interest
Give the son an interest in possession in the property. It's then the PPR under section 225, no CGT arises if he occupies it, and no tax on death of the parents, because it is deemed to belong to the son.

Son is thus protected, perhaps, in the event of his sudden divorce!

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