Gift of main residence & subsequent rent payments

What are implications of living ~ 1/2 year abroad on the requirement to pay rent when gifting

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Hi all

would greatly appreciate some advice on following situation:

single parent (partner died 10+ years ago) - retired.  Ownership of main residence in UK, part ownership of residence abroad (dual citizen - ~ 90% ownership) & 50% ownership of rental property in UK. ~ 100k in savings in join account with child. Parent spends ~ 6m+ abroad (country of origin), maybe 1-2 months travelling & ~ 3-4m in UK

child - 50% ownership in rental property in UK, 10% ownership in residence abroad. currently working & living in main residence in UK.

discussing possibilities of transferring ownership of main residence to child so that a secured loan / mortgage can be taken out against it to finance further property purchase.

aware that if parent continues living in it then it might incur tax charges down the road. is this still the case if parent only lives few months there? its mentioned that "market rent" needs to be paid but if whole property would get eg ~ 2k on market / month, would paying ~ 300 (for use of 1 room only as a lodger) * 3-4m be enough? 

if parent is spending ~ 6m abroad each year is it worth looking into switching out of UK tax residency (if possible)? if the country of origin has much lower tax rates? 

many thanks for any and all advice!

Replies (3)

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By Accountant A
19th Aug 2017 17:44

Hi there,

For information:

https://www.accountingweb.co.uk/about-accountingweb

"AccountingWEB.co.uk is the largest independent online community for accounting and finance professionals in the UK"

If you need professional advice, you really should take advice you can rely on and which takes into account all the relevant facts (which may or may not be included in your post).

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RLI
By lionofludesch
19th Aug 2017 18:02

This is way too complex to be using an online forum.

Get some proper advice.

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By Tax Dragon
20th Aug 2017 13:55

The best online advice is often "you will benefit from personalised advice; go and get". That best advice is given on this site again and again. For free. Not once have I seen an OP express any gratitude.

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