Inheritance and capital gains

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    Inheritance and capital gains

    Hello All, hope everyone is keeping well. I think I'm on the right topic. I just wanted to ask a couple of inheritance tax questions.
    my dad approach me and asked me to help sort his finances so we do not have to pay too much tax later.
    Both parents still married and own a family house worth 1million.
    They also own a commercial property worth about 500k that produces him a rental income of 20k. There is no money owed on either properties and they both agreed that they are willing to sign the properties over as long as we support them financially. They would like to carry on living in the house. He also has some cash in the bank.
    I was just wondering what would opinions you have to keep the amount of taxes down to pay. We are 3 kids and wants to distribute it equally.

    thank you

    #2
    What age kids? Under 18 is a problem.

    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Children are all older. 37 the yougest

      Comment


        #4
        You need to consult a solicitor and an accountant

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          #5
          Ok will do. Thank you

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            #6
            As I understand it,I f they sign the house over to you and continue living in it without paying market rent it is not considered as being out of their estate (gift with reservation) but they can leave £1 million of personal house tax-free to children.

            I think you need an IHT specialist for advice

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              #7
              Bearing in mind that your parents are likely to have other investments too, I agree that an IHT specialist is a must. I've just been through all this and saved a packet in tax.

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                #8
                Originally posted by Heathermove View Post
                Bearing in mind that your parents are likely to have other investments too, I agree that an IHT specialist is a must. I've just been through all this and saved a packet in tax.
                I agree, I've just been through this and looked through Trusts and LTD companies to offset the tax. OP - your circumstances will differ from anyone else, I highly reccomend speaking to a specialist tax accountant that deals with IHT and Capital Gains as they will have the knowledge of how each investment needs to be treated, factoring in things such as VAT (if registered) and income requirements from investments. A specialist Tax accountant will be better suited in the first instance to provide you a report on your requirements before a solicitor is needed.

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