Buying two houses

jamesd

Buy the secondary property, make it your PPR for a while (overnight is in theory enough, but longer is good). This gets you PPR CGT relief for the time it's PPR plus three years. Buy the second property and nominate that as your PPR. Now it gets PPR CGT relief for the time it's PPR plus three years. This gets you three years of additional PPR relief and also means that if you end up letting one or both properties you're also eligible for letting relief on either or both of them.

John_Pierpoint

maisie1234 wrote: »

But what he is suggesting is that his 'share' isnt used for my long term care. So what for example would happen if we had two houses, he died and I decided to sell both and buy something more suitable. Immediately some of the money would be lost and be ring fenced.

The real issue I have with this tbh is that he is demanding that the children spend some of his money on the things he deems acceptable. Sometimes you just have to accept that you need to trust them and that you have brought them up in the right way.

From the point of view of HMRC there are two sorts of trust.

An interest in possession trust, where the beneficiary gets to spend the income produced by the asset. The beneficiary is just not allowed to waste its capital value and has to get the trustee(s) to agree to suggestions for the use of the capital.

The other situation is a discretionary trust, where the trustee(s) can do as they see fit with both assets and income, though they would lay themselves open to action from the beneficiaries if they were to waste the capital of the trust
.
An interest in possession trust is treated by HMRC, much as though the beneficiary were the legal owner of the assets.
The discretionary trust gets a tax treatment, much as though it were the top slice of a rich individuals wealth, unlike the interest in possession trust, it can stay in existence for 125 years and can be difficult to break while there are under age beneficiaries (descendants).

How old are your children, as understandably there are other options open if the beneficiaries are not yet adults?

xylophone

Your children are minors still?

What provision is made for them in your current wills?

Presumably you would plan to make fresh wills after they have reached their majority and perhaps make further changes after you have bought the properties?

By that time they might be out of education/have well paid jobs/have already purchased property?