Hypothetical gift property to children 1% at a time

[anonymous-user]

Property purchased for £60k now valued at £361k

As owned by myself I could gift half to my wife without any cgt implications.

We can then annually each gift a four percent of the property creating a £12k CGT (annual allowance).
Ultimately one or both children could use property as PPR and save the £100k cgt.

Piss on this idea!

[CharlesElliott]

You could have a IHT issue as this would be seen as a gift with reservation.

On the CGT front, you would need to update the deed of trust each year. Do you have a mortgage? The mortgage company won't left you gift part of the property.

Finally, a solicitor would *strongly* advise you against this. You are giving away part of your house. What happens if the children sell their share?

[Eric Mc]

"Part Disposals" will not work if they are seen as part of a tax avoidance method to hide a "Full Disposal".

[anonymous-user]

It’s a second property, no mortgage.

Currently it’s lived in rent free by another family member.

Currently in only my name.

I’d like to do something with it other than give Hmrc £100k to piss up the wall on BBL’s or whatnot

[CharlesElliott]

Are you actually wanting to sell the property?? When did you buy it? What what your costs / improvements over the life of your ownership? Ever been your primary residence?

[Gooose]

See a solicitor who specialises in this thing, I asked a few questions a while back and had a few good replies, but there is also a trust option. No idea how it works or how expensive it is but it’s something like, set a trust up, wait a month or two then transfer the trust to your kids who then take ownership and close down trust. I could be miles out but you have to do your own research which will eventually mean paying for specialist advice.

[anonymous-user]

CharlesElliott said:

Are you actually wanting to sell the property?? When did you buy it? What what your costs / improvements over the life of your ownership? Ever been your primary residence?

Ideally sell it or alternatively give to kids and they can sell it and pocket the money.
Purchased about 25 years ago and lived in for 5 or so and then ‘let’ to a family member foc

[BoRED S2upid]

Can he set up a ltd company with kids and him as co owners, sell the property to the company pay stamp duty which will be cheaper than CGT. Then when he dies it’s his kids asset and business?

[eyebeebe]

Gooose said:

See a solicitor who specialises in this thing, I asked a few questions a while back and had a few good replies, but there is also a trust option. No idea how it works or how expensive it is but it’s something like, set a trust up, wait a month or two then transfer the trust to your kids who then take ownership and close down trust. I could be miles out but you have to do your own research which will eventually mean paying for specialist advice.

This (or an accountant)! Rather than coming up with 3 increasingly wacky ideas on the finance forum, why not just ask a specialist what the most tax efficient method of disposal that achieves your aims is?

[anonymous-user]

eyebeebe said:

Gooose said:

See a solicitor who specialises in this thing, I asked a few questions a while back and had a few good replies, but there is also a trust option. No idea how it works or how expensive it is but it’s something like, set a trust up, wait a month or two then transfer the trust to your kids who then take ownership and close down trust. I could be miles out but you have to do your own research which will eventually mean paying for specialist advice.

This (or an accountant)! Rather than coming up with 3 increasingly wacky ideas on the finance forum, why not just ask a specialist what the most tax efficient method of disposal that achieves your aims is?

I am next week - just banging some ideas around :0)

[LeoSayer]

BoRED S2upid said:

Can he set up a ltd company with kids and him as co owners, sell the property to the company pay stamp duty which will be cheaper than CGT. Then when he dies it’s his kids asset and business?

There will be CGT to pay when he (and his wife) sells to the company.

[Eric Mc]

Exactly. Any sale or other disposal by the OP will be subject to CGT - unless the property is his main residence.

[anonymous-user]

Eric Mc said:

Exactly. Any sale or other disposal by the OP will be subject to CGT - unless the property is his main residence.

I feel divorce is the easiest solution. Make it a PPR again and then sell.

[Dromedary66]

AnotherUsername said:

I feel divorce is the easiest solution. Make it a PPR again and then sell.

Yes.

Divorce the wife. Enter into a civil partnership with one of the children (you may need to visit a Norfolk registry office for this). Gift them half the house.

Fake your death.

Child inherits other half.

Then that child enters into a civil partnership with their sibling (again, a trip to Norfolk). Gifts half to them

Divorce

Jackpot

P.S Not a lawyer/accountant and have myself been investigated by HMRC in the past.

[Eric Mc]

AnotherUsername said:

Eric Mc said:

Exactly. Any sale or other disposal by the OP will be subject to CGT - unless the property is his main residence.

I feel divorce is the easiest solution. Make it a PPR again and then sell.

Have you thought of murder yet? Your solutions to save some tax are getting more and more extreme. You might as well go the whole hog.

And take out some life insurance while you are at it - a win, win situation.

[NickCQ]

AnotherUsername said:

now valued at £361k

I see what you did there