Any Inheritance Tax planning experts?

Any Inheritance Tax planning experts?

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My client's father has to go into a care home due to illness. The only way to pay for the home is to rent his (the father's) private residence out and the rent will be subject to tax. Any advice on how to plan this so that no tax is payable? Your assistance would be much appreciated.

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By WhichTyler
01st Apr 2014 15:18

only way to pay for the home?

If you think this is likely to be the last move they make, could they borrow against the residence, anticipating a sale on his demise? Many local authorities will provide finance on that basis and the interest should be lower than in 'equity release' schemes.

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Replying to Red Leader:
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By MGD
01st Apr 2014 15:20

thanks for this

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By johngroganjga
01st Apr 2014 15:33

Or do both of course.

In relation to the rental income, take care not to allow the tax tail to wag the dog.  Rental income, less the costs of collecting it, less tax on the difference, is still likely to be more than the income generated by leaving the house empty.

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Replying to SteveHa:
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By MGD
01st Apr 2014 16:36

need the income so house may have to be rented if mortgaging the house won't be an option for the client. But yes we will do all the workings first before final decision is made

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By OllyJamesMia
01st Apr 2014 16:03

May be an obvious question, but has a nursing needs assesment taken place?

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Replying to bernard michael:
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By MGD
01st Apr 2014 16:37

the assessment is in the process of being done

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By MGD
01st Apr 2014 16:49

thank everyone

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