A wife has all the savings in her name (for tax reasons) she is going to buy a house with this and rent it to her daughter. the house will just be in wifes name so the rental income will just be on wife's tax return. Is there any issuses i should discuss with the husband???
Replies (3)
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Loss of PPR
No issues with the plan. I wonder whether it would be better for the daughter to buy the property with a loan from the wife (secured on the property if desired). Interest can be charged in lieu of rent. This preserves PPR relief. A possible drawback is if the daughter is claiming benefits.
Fine
No problem with an interest free loan. Clearly the asset, being the loan, remains within the estate of the wife for IHT purposes.