Joint tenant ownership and tax

MeteredOut

Twilight1953 said:

Myreelnametoo - I read the link - thanks. That is referring to transfer of whole property, yes? If I continue to own (and pay IHT on) my half of the house why is that a GROB? 

And yes if I croak before 7 years are up it wouldn't help much!

The Gift with Reservation would be the half of the house you're giving away but still living in. Because you're still living it it, that half is deemed to still fall under IHT, along with the half you own, which forms part of your estate.

If you moved out, and survived 7 years, his half would not fall under IHT.

Have you confirmed IHT would otherwise be due when passing the home onto a child, based on its value?

saajan_12

Twilight1953 said:

Myreelnametoo - I read the link - thanks. That is referring to transfer of whole property, yes? If I continue to own (and pay IHT on) my half of the house why is that a GROB? 

And yes if I croak before 7 years are up it wouldn't help much!

Because you're still living in his half of the property. Your half is irrelevant as that's not gifted, and doesn't mitigate the fact that you still get the benefit of physically living in a whole house. 

Twilight1953

Ah I'm beginning to see the logic. Thanks very much.