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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 8205
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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If my mum was to buy a property as a buy to let investment,

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If my mum was to buy a property as a buy to let investment, would she be able to let it to me?
Also after a few years could the property be ‘gifted’ or signed over to my name? What costs / charges would this incur?
If it stays as a buy to let property when it is on my name – do I lose the stamp duty relief as a first-time buyer when eventually I want to purchase a property for myself?

Hello and welcome to JustAnswer. I’mCustomer a UK qualified accountant. Reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Your mum will be able to let the property to you .. I see no reason why there should be any restriction.

If your mum was to gift the property to you in a few years time, the transfer of property will give rise of a chargeable event for CGT purposes. Any invrease in value would be subject to CGT on your mum.

Secondly, the gift will be deemed as potentially exempt transfer for inheritance tax purposes and seven year rule will apply to the gift. More information on gifts deemed PETs and IHT implication of gifts here

You will not pay any charges on gifted property as there is no consideration.

I am lost on your question about eventually wanting to purchase a property for yourself. If your mum was to transfer the property to you then any property you buy will be treated as a second property in your name. You will not be treated as first time buyer.

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Hi there

Just checking to see if you need me to clarify anything or if you have any additional questions - I am happy to help!

Many thanks

Customer: replied 5 days ago.
Thank you very much for your very quick response - if I understand correctly, should the property value be £325000 or less it would not incur any charges however should the equity increase there would be CGT. What is the current CGT rate?

Thank you for your reply.

CGT rates are 18%, 28% or a combination of both depending on total income including the gain in the year of sale.

It is not the property value but total estate value including the gifts within 7 sevens of date of death - this should be below the threshold of £325,000 for IHT purposes.

I hope this is helpful and answers your question. and other Tax Specialists are ready to help you

I thank you for accepting my answer.

I'm glad I could help you resolve this today. Please follow up here if you have any other questions.

Best wishes.