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Purchasing 50% of parents home.

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Comments

  • Why are your parents even considering this?

    If it’s entirely because they want to help you, do the right thing, be a good person and don’t let them do this to themselves for your benefit!
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Why are your parents even considering this?
    There hasn't been any suggestion that they are...
  • Aside from all the other issues raised, the legal costs of setting all this up would probably outweigh any net saving in tax (if indeed such a claim was allowed)!
  • AdrianC wrote: »
    There hasn't been any suggestion that they are...

    Good point.

    They definitely shouldn’t!
  • HampshireH
    HampshireH Posts: 5,035 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Another point to add;

    You state you will give your brother 50% of probate. Yet you will have received 50% house aka 150k apparently. Plus their rental income meaning that your brothers "half" depletes monthly yet your "half" increases.

    If your parents live long (hopefully they do) your brother will hugely dip out of amy inheritance - how does he feel about this?

    Do your parents know about this idea? It would be in their interest to speak to a solicitor
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Just want to re-highlight this for the people still saying there are deprivation of assets/inheritance tax considerations. There aren't - the parents had £300K before and will have £300K after.
    very true in cash terms
    but parents have sold a half share in a property they continue to occupy.
    I agree that GWR is irrelevant since they sold it and have the corresponding cash. However, that is precisely the scenario that a POAT in intended to catch, you cannot continue to benefit from an asset that you sold... I assume OP is aware of that, hence the (emphasis) "market" rental demand as that defeats a POAT

    the question therefore remains, is 3750 a market rent, if not, OP will need to charge more, and pay tax on it.
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