Transfer of property to your child

dpkbrice

Hi,

So I have read a couple of previous threads about this and I'm no clearer on how to do this.

I currently live in a property that is owned by my parents (who are in their mid 50's) and they want to transfer the property to me. They own their own home plus some rental properties outright and hopefully are a long way off needing care services.

The purpose of the transfer of ownership is to assist me in my upcoming move to the other end of the country, the intention is that I will rent the property out to assist in paying my accommodation costs where I am going. I would then obviously be liable for any tax due from the rental income and not my parents.

I have read a lot about IHT, the seven year rule the risks in relation to future care costs but what I want clarity on is capital gains tax and how to actually go about transferring the property without employing a solicitor.

My parents have never lived at this address and I have occupied it since it was built several years ago, I don't expect the property to have increased in value since it was built given the current housing market.

Any advice would be greatly welcome.

Thanks

Keep_pedalling

Sounds like your parents have more than enough assets to fund any care they may need in the future, so gifting you this property is not going to cause an issue there.

Providing they survive another 7 years then this asset will pass from their estate as far as IHT is concerned.

You obviously don't live in the SE otherwise your parents would be picking up a large CGT bill on the transfer. Thing is do you really want to be a landlord with all the hassle that that can involve?

PennyForThem_2

Actually depending on value and age of parents and apertite (sorry sp) for risk I would be looking at putting it into a Trust.

This is costly (poss 3k +) and there are tax implications when you sell but it removes from parents liabilities and IHT if they die. You will need IFA and def lawyer to draw up documentation. But considering age of parents this is a feasible option.

Or they could gift it too you (they have to live 7 years).