FOREVER HELD/ROLLED OVER?

[Ian Wright]

I recall in the past a tax adviser advising a client that he could convert one of his buy to let properties to a furnished holiday let and then gift it to his daughter who needed somewhere to live. As it was an FHL he could gift (s165) it over as a business asset. The property could then be sold later tax free by the daughter using PPR.

I am sure there is something in S165 that could stop the holdover!!!!! Or is it a good plan? Not much time to do it that is!



I heard the same thing with rollover relief. Buy a property for FHL, use the purchase for rolling over a gain and then eventually move into it and establish as your PPR. Low base cost but you have PPR so the rolled over gain is lost forever!

Anyone any thoughts on what the tax man has to stop this?

[pawncob]

Surely you haven't got time to establish it as a FHL before the deadline. It might be possible with an existing FHL, but it's too late to start from scratch.