Helping parents with property purchase?

lilrobin

My parents are looking to move home. The new property will likely cost a little more expensive than their current house will sell for. They own their original property outright. 

I’m in the fortunate position to be able to help them make a cash offer for their purchase. As the new property will need a lot of work will be required to adapt it to their needs including disabilities, we are looking to have both properties during the renovation period to avoid a chain. They will then sell the original home (within the three-year double stamp window). 

Are there any tax- or inheritance- efficient ways to make this purchase? Any ways to reduce the costs of the two concurrent properties? 

Thank you for any thoughts or considerations. 

Keep_pedalling

Your parents will have to pay additional tax on the purchase (SDLT if this is in England) but will be able to reclaim that if the current home is sold within 3 years providing the]at the purchase is made in their name only. This best way to this would be to loan them the money for the purchase with a charge on the property to protect your loan.

The only tax issue will be having to pay two lots of council tax until the current house is sold. 

Bookworm225

what tax are you trying to avoid?
is their estate large enough for IHT to be a risk?
Are you looking to get your money back before they die? Want to play guessing games that they may need a care home eventually, so you will lose it?

the simplest approach is you give them the cash they need to make up their shortfall and then you stay well away from everything, especially being a co-owner or charging them interest on your money.