I am looking the most cost(tax) effective ways of transferring properties from parent to children.
Three so far have been in my mind but the internet research has only led me so far.. perhaps I can ask you kind people if you have any input or suggestions regarding my options.
Option 1 = Create a property company
Cost = The landlord needs to sell his properties to the new company , hence considerable costs of transfer applies
Avoided costs = inheritance tax
Option 2= selling to children at 1 pound (rest is considered as a gift)
Costs = stamp duty, income tax, capital gains tax
Avoided cost = inheritance tax (if the parents do not die after 7 years)
Option 3 = Freeholder(parent) gives it as a lease. Leaseholder =children
Costs = no costs? But have to come to terms to becoming a leaseholder instead of full landlord… or is there not much of a practical difference… both of them enjoy landlord rights…?
Avoided costs= all?
1) have I researched correctly (I am particularly wary of the third option…is that even possible), and
2) which option is the least costly?
Many thanks for reading my post
Any feedback is appreciated
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