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Buy to let property in children’s names

My husband and I both work. Can we put our buy to let property in our 3 adult children’s names?

My husband and I both work and use all our tax allowance. We want to buy a buy to let property in cash but put it in our 3 adult children’s names. They are not tax payers as they are all travelling. We think this is a good idea as it will avoid the 3% stamp duty and avoid tax from the income as they are not tax payers and the rental income will be under the threshold.

 

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17th Dec 2017 11:25

That's very generous of you. What lovely parents!

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17th Dec 2017 11:36

Are we? Purely financial reasons!

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17th Dec 2017 11:50

Yeah, but your kids get a house out of it, plus all that lovely rent lolly! They'll be loaded in no time, and they'll be able to afford to travel the world, expanding their horizons. You're lovely!

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17th Dec 2017 12:37

and.... they will never fall out in the future when one wants to sell up, never have a problem with their second home ownership, never actually want to live there when the travelling finishes and will happily sell up when you need the money tied up in that property to pay for your nursing home fees. And I haven't even stated on future ex spouses.
All in all sound a good idea.

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to memyself-eye
17th Dec 2017 12:56

I think you've misunderstood. Mum and dad are giving it to the kids, because they're lovely parents. They won't be wanting the money back, when there are nursing home fees to pay.

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17th Dec 2017 13:20

Ok - points taken but what are the positives? My glass is half full.....

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to Janereid8
17th Dec 2017 13:45

Janereid8 wrote:

Ok - points taken but what are the positives? My glass is half full.....

Is your glass rose-coloured ?

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By mjshort
17th Dec 2017 13:25

Just some of the things I discuss with clients with an idea like yours:

Have you thought of a Trust to avoid children's future divorce problems-with 3 children it will happen to one of them?
As pointed out-have you made a conscious decision to avoid nursing home fees?
Have you thought of one of the children going off the rails in the future?
What happens when one of the children need the money but the other two do not want to sell?
Giving the constant rise in house prices have you considered capital gains tax?
The children will all pay the 3% SDLT on their own purchases- so you are probably trebling the SDLT.

Give them each a deposit for their own houses.

Maybe find an Accountant.

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17th Dec 2017 13:38

Thank you for your response. We would give them money for their own house purchase but none of them are any where near wanting to buy homes. The money is currently in a cash ISA and making very little. We just want to try and make as much as poss that they will benefit from.
I don’t know much about CGT but I think I do need to get an accountant. I am also partly self employed and I’m not sure if I can work that to my advantage too.

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to Janereid8
17th Dec 2017 13:46

{sigh}

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to lionofludesch
17th Dec 2017 14:28

Not rose coloured - crystal clear.

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to lionofludesch
17th Dec 2017 14:28

Not rose coloured - crystal clear.

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to Janereid8
17th Dec 2017 14:46

Janereid8 wrote:

Not rose coloured - crystal clear.

1 Corinthians 13:12

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to lionofludesch
18th Dec 2017 11:41

Jesus wept?

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to Red Leader
18th Dec 2017 11:52

Red Leader wrote:

Jesus wept?

John 11:35

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to Janereid8
17th Dec 2017 18:48

Janereid8 wrote:

I am also partly self employed and I’m not sure if I can work that to my advantage too.

Work it to your advantage??

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By zebaa
17th Dec 2017 17:14

To save looking it up here is the quote lion refers to.

“For now we see through a glass, darkly; but then face to face: now I know in part; but then shall I know even as also I am known.”

The meaning is you see now only partly, but later will see more clearly ( with God's help ).

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17th Dec 2017 18:08

You say "We want to buy a buy to let property in cash but put it in our 3 adult children’s names. "

You can do one or the other but not both. It's either yours or your childrens. Doing things to "avoid the 3% stamp duty (sic)" and to "avoid tax from the income" may or may not be legal depending on exactly what your intentions are.

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to Accountant A
17th Dec 2017 21:53

Numbers 23:32

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to lionofludesch
17th Dec 2017 22:28

lionofludesch wrote:

Numbers 23:32

I should have done theology instead of accountancy.

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By DJKL
to Accountant A
18th Dec 2017 00:58

I thought you did, The Book of Numbers.

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to Accountant A
18th Dec 2017 07:24

"Be sure your sins will find you out."

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By jcace
to lionofludesch
18th Dec 2017 09:43

lionofludesch wrote:

Numbers 23:32


The bane of the accountant's work... the transpositional error :)
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18th Dec 2017 10:41

I hope your health is good as there could be a PET. Also make sure you have a new will (or even a first will)

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to bernard michael
18th Dec 2017 11:13

Unless reliefs are involved, a PET as an outright gift does not make the (IHT) situation worse. A PET with benefits reserved does not make the situation better.

There was a thread in here not that long ago about an alleged lifetime gift of property where the (supposed) donor had kept the rents and the (named) recipient had not known of the so-called gift. It had created all sorts of havoc. Even if the OP+spouse wanted to help their children, this would not be the right way to do it. As it's for

Janereid8 wrote:

Purely financial reasons!

it's wrong in every sense.
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to Tax Dragon
18th Dec 2017 11:24

Tax Dragon wrote:

it's wrong in every sense.

Jane has made it clear she's only interested in hearing positives.

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to lionofludesch
18th Dec 2017 11:31

I think Jane's long since fuched off, to be fair.

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to Portia Nina Levin
18th Dec 2017 11:36

Another one-day wonder?

THIS is where we need the mods.

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to Portia Nina Levin
18th Dec 2017 11:44

Portia Nina Levin wrote:

I think Jane's long since fuched off, to be fair.

Good. When she said her glass was half full, I thought she must have already emptied and refilled a few times.

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