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Whoever would pay less tax - I or my son: ultimately the money would go to my children anyway
Actually I would not want the profit to come to me. It would be a case of buying a flat for each of my children. I would like clarification on whether I can do this for them without their paying tax on it. How long would they have to live in it before if they could sell that flat (and buy something else)?
I apologise for any misunderstanding on my part.You would be making gifts to each of your children. So long as you live for at least seven years after maiking the gift, its value will not form part of your estate for Inheritance Tax purposes. Take a look here for information on who pays Inheritance Tax.There is no set time that one has to live in a property for any gain to be exempt, particularly if it is their only home. Theoretically, if one buys a property where the main intention is to make a profit as opposed to making a home, it can be taxable but in practice that will not happen if your children live in any property you buy for them and which is in their names, even if only for a short time. That is, unless there is a discounting scheme or agreement with a builder over multiple purchases for instance. In that case, there may be problems.As you will read in HS283, the gain for the period that a property is the owner's main home plus the gain for the last 18 months of ownership where it has been the owner's main home will be exempt from CGT.
Thanks. So just to clarify once more, if I buy a flat for my son and he lives in it then sells it after, say, a year to buy something else, neither of us would have to pay any tax?