Reduce tax liability on house sale to parents

[johnboniface]

Apologies if this has already been addressed; not really knowing what I am asking, I don't know what to search for to find out.

My parents were to have purchased my current property from me for ~£200,000. They intend to let the property; they do not require a mortgage on the property.

I'm sure that, if they were to make a simple purchase, they would be liable for stamp duty on that 200,000.

Is there an alternative?

My requirements are simply that I have sufficient money to pay my existing mortgage.

My parents requirements are simply that they are able to receive the rental income from the property.

Need they actually purchase the property from me (and incur stamp duty)?

Is there another way in which they can make £200,000 available to me (perhaps simply as a gift) and how does the tax situation for that compare with the purchase situation?

www.direct.gov.uk states: "There's no limit on how much you can give or invest for your children or grandchildren. But the interest might be taxed as your income if ..." and then goes on to state that income tax might be liable if the income realised from that gift exceeds £100. However I understand that that payment might be laible to inheritance tax if it is made within 7 years of my parents' death.

Thankyou in anticipation of a response.

[pawncob]

If your parents intend to let it, the property must be in their names: otherwise the income will be assessed on you!
If they purchase it you won't have an existing mortgage will you?
They can give you the £200k as a gift. Assuming their total estates are worth less than £650k (including the £200k) when they die (if within 7 years) then there will not be an IHT liability.
The Direct Gov quote is in respect of minor children.