If a parent sells their house because they move in with a new partner and gifts the money to children, the children spend some time thinking on what to do with it but it sits in a bank for 6 months unused. The parent's circumstances change (relationship fail) and the parent needs somewhere to live again so the children buy a house in their own names but let the parent live in it rent free, and seven years pass.. What is the tax position of everyone involved?
Was it a gift with reservation of benefit? If a GWROB means the new property is part of the parent's estate even though the children's names are on it, what is the CG liability if the property is sold? Do the children get banged for it or is it the parent's PR and entitled to relief "because it was always the parent's property"? If the parent wants the house they move to to be in their own name rather than the children names, are the children making a gift to the parent?
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