Apologies if this is a silly question, but we have the following situation.
We still own our old PPR which we now let out on a BTL mortgage. Presently the PPR to BTL ratio is about 3:1 for CGT purposes, but that will become less in our favour as time goes on.
Considering the changes to the BTL tax landscape over the last few years, and more in April, we considering selling, but cannot do so before April unfortunately.
We are wondering therefore whether to continue to hold the property and use a trust at a future date to mitigate CGT? Basically, pay off the BTL mortgage in about 10 years, then transfer the BTL property into a trust for the children to live in (as it is in a good commuter and university area), but defer the CGT. Then the children sell it as their PPR and but are not liable for CGT as it is their PPR.
I feel that the CGT must become liable at some point and cannot be so easily avoided but cannot find confirmation on the internet that this approach cannot work.
Advice appreciated. Thank you.
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