A dilapidated listed barn at the back of my parents home recently came up for sale at auction. I bought it for them as they didn’t have the ready funds and they had fallen out with the vendor and were concerned he wouldn’t sell it to them, once he worked out who was buying it. (They tried to buy it once before and it fell through because of bad blood between them). I bought it for my parents on the understanding that they would pay me back once they sold the house and barn in a few year’s time when they are ready to downsize.
Is there any reason from a tax perspective why I shouldn’t transfer the ownership of the barn to my parents now (2 months after the auction) whilst simultaneously registering my loan to them as a charge against the property (the loan being the same amount as I paid at auction). I understand this would necessitate paying stamp duty twice, but as the barn is deemed to be commercial, the stamp duty is very low, and it would simplify matters when they came to sell if both properties were in my parents name. The barn was bought to protect the amenity of my parents farmhouse, and will be used by them exclusively until they are ready to sell up and move on.