1 My two sons and I were involved in building a house which was completed in 2016. The house is in the name of Son A and has 2 promissory notes, one in Son B's name and one for the same amount in my name. I would like to gift mine at this point but am not sure how. If I gift 50/50 to 2 sons, then die within the 7 year rule period, Son A will presumably have to pay capital gains tax on any increase in the value of the new house pro rata to the gift, whereas Son B will not have to pay anything as his share will not have increased as it is a set sum of money. Am I correct in this assumption. I am thinking it would be better to gift to son B.
2 We all have a one third share in the "family" home and intend demolishing this and building a new dwelling with a granny annexe for me. At the moment each share of the property is worth, for example, £100,000 each. My sons will raise a substantial amount against the first new build outlined in question 1 in order to do the new replacement build. It is reasonable for me, I think (as I am not inputting any further finance), just to retain the £100,000 share in our current home and therefore have a share in the replacement property of one sixth of its value (for example if replacement is worth £600,000), or to take myself off the title deeds and just have a promissory note for £100,000. I hope to end my days in the granny annexe (although pretty fit at the moment) but need to make sure I am not creating problems for the future as regards tax implications and possible care fees.
I have tried to research all of this but am still confused on the best way forward. Any thoughts on this would be appreciated.
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