Client gave house away to son 7 years ago. Continued to live there but paid MV rent to son and bills. In year 8 and onwards can he cease the rent and still be outside IHT? Struggling with link between GWR and POAT. Thanks.
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POAT irrelevant.
GWR will apply unless a full rent is paid in the 7 years prior to death - which in practice means he must continue to pay for the rest of his life. Whether this is a good idea given the tax the son must pay on the rent, the new residence nil rate band and the loss of a tax-free uplift for CGT purposes on death is another question!