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Gifting house to child
Comments
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You can thank those wacky lot at the Money Advice Service :rotfl:
https://www.moneyadviceservice.org.uk/en/articles/gifts-and-exemptions-from-inheritance-tax#how-much-can-i-give-to-my-children-and-family-tax-freeGifts where you still have an interest in it - no matter when you’ve given it - don’t qualify as a PET.
For example, if you continue to live for free in the house you gave your child more than 10 years ago.
The house would still be considered part of your estate and therefore subject to Inheritance Tax.
This is known as “reserving a benefit” in the property which you gave away.0 -
foxy-stoat wrote: »https://forums.moneysavingexpert.com/discussion/5876608/help-me-help-my-mum
Did you take the advice in your last thread?
Sigh, the OP didn't like what they wanted to hear"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Sigh, the OP didn't like what they wanted to hear0
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*sigh* I can't help but be deeply jealous of you. No messing about with mortgages, or paying hundreds of thousands of pounds in interests to banks over most of your adult life, or working for 20 years for that money, you're set, just like that.Know what you don't0
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*sigh* I can't help but be deeply jealous of you. No messing about with mortgages, or paying hundreds of thousands of pounds in interests to banks over most of your adult life, or working for 20 years for that money, you're set, just like that.
My Dad suggested I put my student loans in to savings during university. I graduated in 2008, so it was still 1000 GBP/year. I also lived at home during university, worked and paid rent, so I could afford to save my student loan.
After graduating I got a job, saved for a couple more years, then used the money I saved over the years as a deposit on a one bed flat in Bristol for 108k in 2011. Sold in 2017 for 165k despite making zero improvements (lol housing market !!!!!!).
Moved to Germany and now I rent. I have absolutely no intention of purchasing a house in the foreseeable future (when in Rome).0 -
OP
* if mum continues to live there its a gift with reservation. Does not help inheritance tax (and probably not care costs either)
* child becomesliable to Capital Gains Tax on sale of property not being main residence
* Child loses all potential FTB schemes
* Additional (2nd home) SDLT
* if child hits financial problems, gets divorced etc, mum's home is at risk
* insurance gets more difficult - landlords insurance required if rent paid, if no rent, other specialist insurance
* is there/will there be a mortgage?
* if rent paid (note payment in kind = rent) income tax liability + 101 tenancy regulations to comply with
* if no rent, mum is a licencee with even less security. Long-term leaving her vulnerable0 -
OP
* if mum continues to live there its a gift with reservation. Does not help inheritance tax (and probably not care costs either)
* child becomesliable to Capital Gains Tax on sale of property not being main residence
* Child loses all potential FTB schemes
* Additional (2nd home) SDLT
* if child hits financial problems, gets divorced etc, mum's home is at risk
* insurance gets more difficult - landlords insurance required if rent paid, if no rent, other specialist insurance
* is there/will there be a mortgage?
* if rent paid (note payment in kind = rent) income tax liability + 101 tenancy regulations to comply with
* if no rent, mum is a licencee with even less security. Long-term leaving her vulnerable
Yeah sounds more effort than it's worth really.
The reason I sold my flat after moving to Germany is because I couldn't be bothered to be a landlord (and cashing in while the market was still high).0
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