Inheritance Tax

grey_gym_sock

John_Pierpoint wrote: »

Don't forget that the occupier has to pay full market rent (on which someone will be paying income tax) to avoid retention of benefit rules making the asset liable to IHT regardless.

but do they in this case? the rule is about a gift with reservation of benefit. a gift includes a sale at undervalue. but if the real market price is paid - i.e. the same that a commercial equity release scheme would pay under the same terms - then there is no gift.

clearly, good evidence about that market price should be gathered.

and it's still perhaps not that good an idea, when you consider CGT.