buying a property jointly with my child

[michelingeceline]

we are belgian nationals and domiciled and living in belgium.
our child is belgian domiciled and will keep it that way but will start working in the uk as of february 2018 and thus will be uk tax resident.
we would like to give her money to buy a flat and we would also (if this is possible in uk) buy together wit her ,i.e. she buys 90% of the property and we buy 10%,this allows us to keep some kind of control.

how can we do this and what are cgt and or iht implications?

[Lee Young]

How old is your daughter?

Joint ownership is perfectly possible - a gift of cash to her is an IHT event, but no CGT as VCGT dies not apply to cash gifts. IHT and CGT position going forward will depend largely on who occupies the property.

[michelingeceline]

She ,our daughter would occupy the property

[RMC]

Firstly, on purchase of the flat you instruct your solicitor or conveyancer to complete a form T1 showing you owning 10% and your child 90%, as ‘tenants in common’.

On eventual disposal, you will have to file a non-resident CGT return showing gain or loss, and may be liable to UK CGT. The return is due within 30 days of completion and your solicitor or conveyancer will take care of it. You will get relief from Belgian tax for any UK tax paid. Your child’s share will be exempt under the Principal Private Residence rules.

When you die your share may be liable to UK IHT if its value exceeds the IHT exemptions, but not CGT.

[someone]

Depending on whether you own any other property, your 10% could make the entire transaction liable to the higher rates of SDLT.

I think that if your share is worth less than 40k then you are OK (unless your child already owns property)

[someone]

Depending on whether you own any other property, your 10% could make the entire transaction liable to the higher rates of SDLT.

I think that if your share is worth less than 40k then you are OK (unless your child already owns property)

An as soon as I wrote that I'm pretty sure I remember maths saying that the whole transaction is in point so my 40k comment is a red herring.