This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Please help - setting up company to buy property in childrens' names

Matt2008
Posts:9
Joined:Wed Aug 06, 2008 1:52 pm
Please help - setting up company to buy property in childrens' names

Postby Matt2008 » Tue Nov 03, 2020 2:48 pm

Hi there I wonder if you could help. I have a number of properties but I am buying a new BTL property (cash without a mortgage) and, to remove the assets from my estate, I am buying it in the name of my two children aged 13 and 15. The rent will stay in the company, I have no need to withdraw it either as dividends or directors salary. I understand that this means the children will have control over property when they are older. My question is, would it fall foul of the 'gift with a reservation of a benefit' rules if I appoint myself as the director of the company, even though I am not taking a salary? Otherwise I can ask my elderly mother (their grandmother) to be a director

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Please help - setting up company to buy property in childrens' names

Postby pawncob » Fri Nov 06, 2020 12:55 pm

Being a director is not a reservation of benefit, but other matters may make this difficult.
Infants can't legally own shares (although that's not a barrier), and as it's a gift to your children, any income arising would be assessed on you.
With a pinch of salt take what I say, but don't exceed your RDA


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”