Avoid the 40% UK Inheritance Tax - Give away your home Read about our IHT services www.optimiseaccountants.co.uk/services/inheritance-tax-advisors/ Need a buy to let mortgage? survey.zohopublic.com/zs/GuCCYx
My daughter owns everything that would be mine, it's been slowly transfered as gift in dribbles over a 20 year period because I trust her fully to be both smart & fair & she's never disappointed me in the 40 years she's been around.
Be careful. If you benefit from those transfers in any way the gift with reservation rules apply and IHT is payable. Eg an cash transfers back or living market rent free at a property your daughter owns. 0:01
Do the children not have to pay income tax at their marginal rate on the rent for 7 years? As the giver will be paying the rent out of taxed income there is in effect double taxation.
There are a lot of things o do not mention on a short video. There is no possibility of identifying and showing ways to mitigate legal matters, especially in a tax video
Great video! Only question: IHT is applicable to the estate of a deceased person, how come a couple’s life time allowances are come alive at one person’s death. Couple don’t die at the same time. Please clarify. Gift of any amount wont attract IHT or only upto the worth of £325k?
Hi there. Or a couple of things that you are asking questions about. The first thing is inheritance tax. The ides to lifetime allowance is passed from one person to another upon death. This means that the ice two lifetime mounts is £650,000 for the couple. There is no inheritance tax on guests, only capital gains tax on certain assets.
Thank you for the reply. If I could bother you with another question. Can I put buy to let properties in a ltd company and leave them to my children without paying IHT while both recieving the rents while I'm alive and safeguarding the properties from my children's spouses in case they divorce while I'm alive. Thanks
@AlHR23 you might want to get some tax advice given the complexity of your scenario to avoid costly mistakes being made. A consultation of a few hundred will save a lot more in the long run.
Can the parent partially gift the house? So for example give 50% of a 1 mil house as a gift so that the remaining inheritance doesn’t go above the threshold?
Will we pay tax on giving our rented house to our adult children if we gift to them and receive rent for us as pension ? Our main residence is worth less than 1m
You will pay capital gains tax on the gift to your children. There is a possibility of using trust, but that is too complicated to speak on a RUclips forum.
@kalpnashah4030 you only pain tax on the gain less your annual CGT exemptions of £6,000 per person. The 18% tax rate is for basic rate taxpayers and 28% for high rate taxpayers
What happens if you never owned the home. For example if you bought the home with your money for a child, more then 7 years ago, but lived in the house yourself? i.e., the house was never in your own name.
This would be a sale on the pension but it is possible but you would need to replace the property with your own money to prevent a tax trap by taking assets (money equivalent) from your pension.
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Avoid the 40% UK Inheritance Tax - Give away your home Read about our IHT services www.optimiseaccountants.co.uk/services/inheritance-tax-advisors/ Need a buy to let mortgage? survey.zohopublic.com/zs/GuCCYx
My daughter owns everything that would be mine, it's been slowly transfered as gift in dribbles over a 20 year period because I trust her fully to be both smart & fair & she's never disappointed me in the 40 years she's been around.
That is lovely to read ❤️
I wish you were my mum
How come you don’t want to give the government 40% inheritance tax?
I know right? It should be at least 80% 😂
Be careful. If you benefit from those transfers in any way the gift with reservation rules apply and IHT is payable. Eg an cash transfers back or living market rent free at a property your daughter owns. 0:01
Do the children not have to pay income tax at their marginal rate on the rent for 7 years? As the giver will be paying the rent out of taxed income there is in effect double taxation.
It is an income and taxable. It is a trade off
super helpful thank you
Thank you so much for the kind comment 🙏
You don’t mention what happens when a child divorces…suddenly the OH is entitled to half of this asset.
There are a lot of things o do not mention on a short video. There is no possibility of identifying and showing ways to mitigate legal matters, especially in a tax video
If you gift your house to your kids and they divorce do you have to live on a park bench?
You have to do a room share on park benches nowadays 😂
Great video! Only question: IHT is applicable to the estate of a deceased person, how come a couple’s life time allowances are come alive at one person’s death. Couple don’t die at the same time. Please clarify.
Gift of any amount wont attract IHT or only upto the worth of £325k?
Hi there.
Or a couple of things that you are asking questions about.
The first thing is inheritance tax. The ides to lifetime allowance is passed from one person to another upon death. This means that the ice two lifetime mounts is £650,000 for the couple.
There is no inheritance tax on guests, only capital gains tax on certain assets.
@@UK-Property-Tax-Accountants Thank you for such a prompt and detailed answer.
Always welcome 🙏
Thanks for the informative video. Would it be possible to leave the property to the children in a trust and continue living there without facing IHT?
Yes but only if you pay market rent to the trust
Thank you for the reply. If I could bother you with another question. Can I put buy to let properties in a ltd company and leave them to my children without paying IHT while both recieving the rents while I'm alive and safeguarding the properties from my children's spouses in case they divorce while I'm alive. Thanks
@AlHR23 you might want to get some tax advice given the complexity of your scenario to avoid costly mistakes being made. A consultation of a few hundred will save a lot more in the long run.
@AlHR23 the answer to your question is sadly not
Can the parent partially gift the house? So for example give 50% of a 1 mil house as a gift so that the remaining inheritance doesn’t go above the threshold?
This is possible, but the first gift requires you to live for seven years otherwise it is poured back into the estate for inheritance tax perspective
Please get some legal advice on this specific case. A lot of mistakes may be made here. One of them is not talking to a professional 🙏
@@UK-Property-Tax-Accountants thanks for the reply 👍🏻
Thank You
You are welcome 🙏
Will we pay tax on giving our rented house to our adult children if we gift to them and receive rent for us as pension ? Our main residence is worth less than 1m
You will pay capital gains tax on the gift to your children. There is a possibility of using trust, but that is too complicated to speak on a RUclips forum.
Thank you for replying as we bought 2nd property in 2021 it’s not gained much equity so you only pay on the different ie gain ? At 18 percent.
@kalpnashah4030 you only pain tax on the gain less your annual CGT exemptions of £6,000 per person. The 18% tax rate is for basic rate taxpayers and 28% for high rate taxpayers
When you say give away your house .. is that only to your children or includes anyone?
I have no kids.. but intend to leave to my neice..
You can gift your house to anyone you like 👍
What happens if you never owned the home. For example if you bought the home with your money for a child, more then 7 years ago, but lived in the house yourself? i.e., the house was never in your own name.
It is not your home if your name is not on the land registry. Therefore the home can’t be part of your estate for IHT purposes.
Can i give me commercial property that was bought with my pension to my daughter
This would be a sale on the pension but it is possible but you would need to replace the property with your own money to prevent a tax trap by taking assets (money equivalent) from your pension.