Good evening all. I was wondering if anybody had seen the following in practice and could confirm treatment is correct:
Father gives 25% of main residence to each of his two children. He continues to occupy the property.
Full market rent independently valued is £2,000pcm for the whole property. In order to avoid being caught by the GWR rules, he puts tenancy agreements in place with both children for £500pcm each. Based on the percentage ownership, does this satisfy 'full consideration' for the purposes of GWR?
Children report rental income on their Self Assessments, after deducting appropriate expenses based on percentage ownership.