buying rented property - how landlord can avoid tax

[lucy.mandeville@ntlw]

We are living in a rented property which is one of several owned by our landlords. They were left the houses in a will about 50 years ago. They are elderly and would pass on these houses to their children.
We would like to buy our property but our landlady believes that this would render her or her sons liable for capital gains or inheritance tax.
Is there any way we can avoid this but retain her rental income? For example by purchasing a percentage of the property each year. The house is worth around £140,000 and we pay £400 per month at present. We believe her equity must be around £120,000 minimum.

[funcrusherbill]

Your landlords will probably pay IHT anyway on death since clearly wealthy. Unfortunately, if theysell to you, they will pay CGT now, and then IHT on top when they die, so there reaction is understandable.

The % idea might work if they don't use up there annual CGT allowance. Together they could probably sell you about 15% each year and avoid CGT, if they have no other capital gains. But I doubt if you will persuade them.