Capital gains tax

brodev

I am thinking of buying a flat for my son whilst he is at uni. If I buy it in his name and then at the end of 5 years say, sell it, what are the CGT implications? As the flat will be in his name and he will be living in it he will not be liable for CGT. But, as it is bought with my money and I will be getting back from him most if not all of the sale price, will the tax authorities accept this as being ok, or will they make me pay CGT? TIA

sneekymum

If you buy it with your money and put it in his name then its his - he doesn't have to give it back - its a gift. Don't try to get a mortgage to do this though as the lender won't let you - you'd need to have the money first.

Once its sold he may choose to give you the money & I would have thought that would be OK as this may happen to all sorts of people for many reasons - not just tax avoidance ( he might be going abroad ) - and the tax man can't know what's in your minds. Though it does sound a bit dodgy & I'd be very keen to hear an expert opinion....