My wife and I are not UK citizens, not resident in the UK, and not tax domiciled in the UK. We reside in Indonesia.
In 2006 whilst our daughters were studying in the UK, we bought a flat for them to stay in whilst studying there and for us to stay in whenever we visited the UK.
In 2013, whilst we were in the UK, we made a rush decision to sell our flat and buy a house. The house was valued at roughly £600,000. Due to various reasons, mainly delays in selling the flat, transferring of funds from overseas to the UK, limited time in the UK, etc., we were only able to accumulate £400,000 in cash. In order to obtain financing for the balance of £200,000, namely a mortgage, it was decided to purchase the house in our daughters combined names, as they are of EU nationality and considered resident in the UK.
Since then, the mortgage monthly repayments have been debited to one of our daughter’s bank accounts in the UK by the mortgage company and we reimburse her for the same amount every month.
Since moving into the house in 2014, our daughters who are both aged 30+, single, and well employed, have been paying for all expenses incurred in running the house. We decided at the time that we would consider this house to now belong to our daughters equally. A deposit let’s say on what they would eventually receive when we pass away.
Whenever my wife and I visit the UK, (twice a year for about 6 weeks each visit), we stay at this house.
There are no inheritance, estate, and gift taxes in Indonesia, but we are very keen to find out what would be our daughter’s tax exposure now in the UK with regards to this house, and if any, what steps would be required of us to ensure that any taxes would be kept to a minimum.
Thank you in advance for any information, assistance or guidance you may provide.
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