Some 14 years ago my sibling and I purchased a house for the use of our parents who had just returned from overseas. The house was registered in our two names and our parents have lived there rent free. We are both married and live with our partners in our individual homes
With the passage of the years the house has become too much of a burden for our aging parents and we would like to sell it and buy them a more manageable flat. It is appreciated that we will incur significant capital gains tax on the sale of the house.
As we both already own our personal homes it would appear that when we purchase the replacement flat for our parents it will probably be deemed the acquisition of a second property and thereby incur the extra stamp imposed on second homes.
Are there any special provisions or concessions on stamp duty in cases such as this (downsizing allowance or whatever). There is no question of the flat being a buy to let as our parents will live in the flat rent free just as they did in the house.
Any advice on how we might structure this change of property in the most economical way, hopefully avoiding or mitigating the extra stamp duty, would be greatly appreciated.
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