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Buying a flat for our son
seven-day-weekend
Posts: 36,755 Forumite
in Cutting tax
I posted this on another board, got one reply (thanks!), but thought I'd try it here too for a different slant.
If we were to buy a flat for our son in the future (in his name), would there be a) any tax liabilites and b) would it be safe if we were to go into care?
It won't be for a few years and we'll be in our 60s (we're already retired).
If we were to buy a flat for our son in the future (in his name), would there be a) any tax liabilites and b) would it be safe if we were to go into care?
It won't be for a few years and we'll be in our 60s (we're already retired).
(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
0
Comments
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What will not be for a few years?
You buying your son a flat or you going into care?
How many years is a few?..0 -
Say five years-ish before we buy the flat, hopefully we won't go into care at all!
(We would not live with him, we would live in our own house).(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
Simple analysis:
If you're buying the flat in his name you are basically giving your son cash to buy a flat (cash is exempt from CGT).
However, the cash gift wil be a potentially exempt transfer for IHT purposes. So may become chargeable if you die within seven years of thegift.0 -
Thanks for the reply, presumably the IHT only would only apply if we are over the threshold?(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
yep, (presumably you haven't been going around making lots of other gifts)0
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scroggin wrote:yep, (presumably you haven't been going around making lots of other gifts)
No, we haven't and when we return to the UK in July/August for a month, we are seeing our solicitor to have our UK house owned as Tenants in Common, so that we won't go over the IHT threshold.
Thanks very much for your help.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
just one thing - could you adopt me and buy a flat for me as well?
(only kidding)0
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