This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

PPR & Lettings Relief on part-transfer to kids before we lose it in April?

Another John
Posts: 31
Joined: Wed Aug 06, 2008 3:16 pm

PPR & Lettings Relief on part-transfer to kids before we lose it in April?

Postby Another John » Fri Mar 06, 2020 11:21 am

This question has come about after considering 2 main issues:-

1. My wife and I have been looking at ways of being able to give our grown-up children (27 & 32) a share of rental income.
2. We bought mixed-use property (on a single freehold Title) in 1986 and used most of it as our PPR for 9yrs and we would like to try to find a way of benefitting from Lettings Relief (and the exemption for the last 18mths of ownership) before it disappears in April.

The gain on the PPR portion is £665k and we would like to gift somewhere between 20-25% to the children.

Would those reliefs be applicable if my wife & I still part-own the ex-PPR property?

I should add that the apportionment of the mixed-use freehold is quite complex because a couple of parts of the original PPR (the basement and rear garage) were temporarily separated-out and rented for short periods over the years, but these changes in the heretitaments were all notified and documented in the Valuations Lists over the years. Furthermore, we have taken the ground floor shop out of the equation because it has never formed part of the PPR - its value in 1986 was £25k and now £225k.

Any opinions, advice or pointers would be much appreciated – thank you.

Another John
Posts: 31
Joined: Wed Aug 06, 2008 3:16 pm

Re: PPR & Lettings Relief on part-transfer to kids before we lose it in April?

Postby Another John » Wed Mar 11, 2020 3:46 pm

All sorted with full exemptions agreed.

maths
Posts: 7893
Joined: Wed Aug 06, 2008 3:25 pm

Re: PPR & Lettings Relief on part-transfer to kids before we lose it in April?

Postby maths » Wed Mar 11, 2020 9:33 pm

All sorted with full exemptions agreed.
What do you mean by this?


Return to “Capital Gains Tax, CGT”