Hi
I am hoping to buy a second property for my children who are both over 18. Our house is currently mortgage free and I hope to remortgage on this house releasing the money to buy the second home in my children's names. The house would initially be let out until they wished to live in it themselves. The income from the house could be paid to us to pay the mortgage in which case ? it would be subject to income tax or we could pay the mortgage and the income paid to them. In the second case would the income then not be taxable as it would be within their personal allowances. The above sceniro would avoid paying the extra stamp duty now payable on second properties, and would avoid CGT as it would be their main residence. Can I also assume that the cash gift would also be a PET, and tax only be payable if one of us die within 7 years. Is there anything else I should consider, be thinking about. Is there any formal way in which this should be documented legally.
Thanks for any advice
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