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Misled
poqueno
Posts: 1 Newbie
If I gift my London Flat to my daughter and continue to live in it. the Inland Revenue will not accept that it was a true gift. Could I SELL the flat to her, she pays stamp duty but but payment of cost of flat is spread over 20 years . the first payment whenever.meanwhile I now continue to live in flat. ? Thus avoiding Inheritance Tax
0
Comments
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You are write in that a gift with a reservation is not a gift !
Your way round it would be to give the property to your daughter and then rent it from her. I am not advising you to be fraudulent but I am aware that people do this.
Check with your accoutant for tax saving advice.
I would query selling your property, giving the equity to your daughter as a gift, your daughter buys a new property and allows you to live in it. The gift to her may then avoid inheritance tax if you survive 7 years. This may be a possible loophole - I would advise you get tax advice in any event.0 -
Similar scenario, and dont know if relevant to OP as doesn't say if house still mortgaged, or if daughter will be taking out mortgage.
Parents transfer house into my name and continue to live there, but they are paying the mortgage. Therefore if give me the mortgage amount as "rent" which I then use to pay it, does this get round it?0 -
Start a thread as follows
Q 4 FS :
I will be happy to help0 -
HGLTsuperstar - Only if the rent is market rate.0
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Well if it covers the mortgage then it would be so it is OK then?0
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No not necessarily. It depends on how much the mortgage is. Think of it this way - if you were renting a property would you expect only to cover the amount of the landlords loan? No, you wouldn't. There are other costs involved in renting that should be included in an economic rent. For a start, the money your parents pay you will be classified as income, so you'll be paying taxes on it. If you were truly a landlord you'd also have to build in an amount for maintenance. You need to seek advice from a specialist in this field. These are simply thoughts of the top of my head.
Jennifer0
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