SDLT - Buy to Let for Bare Trustee of minor beneficiaries

silvercar

G_M wrote:

I suspect that if this were possible, 100s of BTL landlords would be putting their properties into their kids names not just for the SDLT advantages, but also for income tax purposes............

I suspect that the costs of creating the trusts, reporting requirements, tax considerations, knock on effects when kids become of age themselves etc may mean that the costs outweigh the benefits.

As well as your tax situation now, you have to consider the effect on kids tax situation in years to come as well as what any government may enforce on your tax situation in the intervening years.

teddysmum

What if something arises like no gas certificate or personal injury to an occupant (eg wall collapses or floorboards give way) ? Who is financially responsible ?

G_M

teddysmum wrote: »

What if something arises like no gas certificate or personal injury to an occupant (eg wall collapses or floorboards give way) ? Who is financially responsible ?

.... and who goes to prison?The beneficiary or the Trustee.....?

Benzene

It should be trustee! He/ she is responsible for finances and other matters...

xylophone

This will be a "parental settlement"


http://www.taxcafe.co.uk/resources/buying_property_for_children.html

G_M

xylophone wrote: »

This will be a "parental settlement"


http://www.taxcafe.co.uk/resources/buying_property_for_children.html

Very enlightening.

Hopefully Benzene is aware of these intracacies (or at least, Benzene's wife!), has taken suitable advice, and will not end up falling foul of any leglislation.

SDLT_Geek

There are special rules for properties held for children under 18 within the legislation for the 3% surcharge at Finance Act 2003/Sch4ZA. The effect is to treat a property bought for a child as if bought for the parents for surcharge purposes. As a property is already owned, the surcharge will be due on the purchases.