Best way to buy a second home

Jack2015

Hi

My son has saved up for a decade by living at home and he has given me roughly 50% to buy another property. We are able to fund it as a cash buyers.

The idea was to live between the two houses, they aren't very far in distance away. The house where we live now is in my name and we have provisionally put the other house is me, my wife and son's name.

Are their any tax implications with this, either now or later (e.g selling?)

Also we pay the full council tax at our present house, but was wondering how it would work with the other house and how long people can live in the house before they become counted.

Thanks for your help

Cornucopia

Unless there is a particular reason not to put the second house in your son's name (and he is over 18), then that is by far the simplest approach. If you are providing some of the funds from your savings, you may wish to consult a solicitor/accountant on the tax/benefits implications of that.

If your son owns the second home, and no other properties, then he will pay no Capital Gains Tax on it. However, if you own it (even if it is jointly with him) you will have to account for CGT as it will be a second property.

Probably savings on Council Tax to be had, too.

You can all still share the use of both properties on a day-to-day basis, if you want/need to.

Jack2015

Thank-you Cornucopia

So If my son (he's single) has the property and pays council tax on it and we continue to pay council tax on our home, he and we can use and sleep and both homes?

Thanks

lincroft1710

Jack2015 wrote: »

So If my son (he's single) has the property and pays council tax on it and we continue to pay council tax on our home, he and we can use and sleep and both homes?

Thanks

Will your son be staying in the new house on his own for certain days of the week.? Where will his clothes and possessions be?

If the answer to the first question is "No" and to the second "At the old house" and your son declares himself as sole occupier of the new house, he is committing Council Tax fraud.

Cornucopia

Whoa there....

The answer to Jack2015's question is yes, you can all use both houses, freely, though you might need to check the Council Tax rules to see how frequently you/your son need to be staying in each of the properties so that they don't count as "empty".

Even then, there's not really any question of fraud if you are paying for both properties on a "normal" occupancy basis.

The only potential issue arises if your son wants to claim single person discount for his property, and you stay there frequently. Obviously, he doesn't *have* to claim the discount, or alternatively you can check the detailed rules.