Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit

Have we escaped Gift with Reservation of Benfit...

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A wealthy daughter wanted her parents to move home and decided to buy a property that her parents then moved into, rent free. 

The daughter has her own home.

The parents then sold their previous home to an unconnected third party and decided to gift part of the cash proceeds to their daughter.

None of this was pre-ordained.  The occupation of the new property was not conditional upon a subsequent cash gift being made. 

For GWR, it is a cash gift so on the face of it, no "tracing" (IHTM14372).  The associated operations provisions at FA 1986 Sch.20 paragraph 6(1)(c) would not appear to be in point.

I do not think GWR is applicable but would welcome opinions.

For POA, as the cash was gifted to the daughter after the new property was purchased and the gift was not planned in advance, the proceeds do not appear to have been directly or indirectly applied towards the cost of acquiring the new property and so neither the "disposal condition" (IHTM44004) or "contribution condition" (IHTM44005) appear to be in point.

This leads me to the conclusion that POA is not in applicable either.

Am I missing something obvious?

Thanks.

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By Summerjosh
31st Oct 2014 10:21

I have a similar situation, so any comments would be greatly appreciated.

 

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