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Where Taxpayers and Advisers Meet

main residence part gift to children

hungryfor knowledge
Posts: 4
Joined: Tue Nov 14, 2017 5:00 pm

main residence part gift to children

Postby hungryfor knowledge » Tue Nov 14, 2017 5:18 pm

would be grateful if an expert can answer my question,

what will be CGT AND inheritance TAX Iimplications, if I INCLUDE MY TWO ADULT CHILDREN IN my main residence?
my main residence is nearly freehold,my children live with me.

Posts: 7450
Joined: Wed Aug 06, 2008 3:25 pm

Re: main residence part gift to children

Postby maths » Tue Nov 14, 2017 9:21 pm

If you give a beneficial interest to each adult child any gain arising on the gifts should qualify for the private residence exemption and hence be CGT free.

The gifts are subject to IHT only if you die within 7 years of making the gift but even then no actual IHT may be payable.
However, the whole of the house will remain in your estate for IHT should you die as your gifts are treated a s gifts with reservation.

In short, no real problems depending upon the value of the house and so long as children remain living in the property.

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