Although I work in practice, I mostly deal with corporate taxes, so this may be a simple question for some of you, in which case I apologise!
If a parent is gifting rental property to their (adult) child, is it possible for the child to then gift the parent the money due for the CGT liability? I have been unable to find any guidance stating this isn't allowed, but if anyone is aware of any restrictions I'd be very grateful.
The property is owned outright, so I believe that no SDLT would be payable by the child.
It's always been my understanding that the gift would be a PET and that IHT would not be due unless the parent died within 7 years, but I have read a few articles which suggest transfers of property valued over the £325,000 NRB may attract 20% lifetime IHT. Am I correct in thinking these were just poorly worded, and were actually referring to gifts into a trust?
This is for personal tax planning, and I will be discussing in more detail with colleagues in due course, but would like to clear a couple of points in my own mind before going any further.
Thank you for your advice in advance.