I am new to this Forum so apologies if this is a really naïve question!
I have a BTL property with a very low LTV ratio and would like to capital raise against it - £300-£350k. I would like to give this to my son as a deposit to get him on the property ladder. He is a student and working part-time so I am thinking he could take out a first-time buyer mortgage in his own name and his name alone would be on the property title deeds. I would have no interest in the property. Does this qualify as a gift without reservation whereby all I have to do is live for 7 years so this stays out of inheritance tax net, or is that too easy?! Are there limits to how big this gift can be? Are there any other tax implications? Is there any particular time in the tax year when it's more beneficial to make such a gift?
If we agreed that once he is earning, he could repay part of the gift, I guess that could remove the "without reservation" status. Is that the case?
Any other thoughts/advice/experience to share would be most appreciated.
Many thanks.
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