Buying parents holiday cottage - tax benefits?

amcluesent

So, my elderly parents have illiquid assets and lack spending cash; they have shares, house they live in and a holiday cottage plus a small pension.

The holiday cottage is very, very dilapidated; I am loath to spend money doing it up from my taxed income and then seeing any gain in value subject to IHT in due course.

My thinking is to get defensible, but low, valuations on the cottage and buy it from my parents on a mortgage. They then have the cash to use for a better lifestyle.

I can then invest in the property, knowing that I will benefit. I just need to review how to limit CGT on a future disposal (I own my own house outright).

Can anyone see a major flaw or a better way of maximising value for the family?

CLAPTON

if your parents need more cash then why dont they just sell the property

if you want to buy an investment property then you can just do that

so why is it profitable to combine the two separate issues?