Son (S) with only one UK freehold property (100% equity) with no mortgage, but future French CGT liability.
S planning to reside in France from July, and wishes to remove future high CGT in France, from sale of UK property.
As the property can not be sold before S moves to France, as mother (M) and father (F) are happily residing there, with S, what are the implications of S transferring 50% equity to M and F as a repayment of a loan (have the original bank transfers), and S selling remaining 50% equity to M and F for £375,000 which they loan under a contract, which states that they have to repay the loan when the house is sold for 50% of the total sale amount. Property is currently valued at £750,000
Presuming this would be judged as loans, there would be no gifting on S part, so S estate would be unaffected if he were to die.
Maybe the contract could say, on the event of S death, before the loan was repaid, who S wishes the benefeceries to be.
S would have no UK tax liability at time of transfer or future sale or loan repayments.
M and F would not be due to pay any Stamp Duty on the transfer.
As the property is not guesstimated to be worth more than £850,000 at time of sale and as M and F have leas than £150,000 in other assets, M and F estate would not incur any IHT at time of either of their deaths.
If M and F reside there until its sold, M and F would not have any CGT liability.
If M or F needed to enter residential care, the loan for 50% of the property would be protected from the local authority.
The loan could be the first thing to be settled on the sale of the property, or as part of the estate in the event of M or F death.
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