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.
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