Gifting a house but keeping rental income?

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    Gifting a house but keeping rental income?

    I am about to move to a new house and I plan to let out the family house (mortgage free). I'd like to be able to enjoy the rental income for about the next 10 years, but if possible, I would like to give the house to my child (adult), now.

    Is this possible? Can this be done under the 7 year rule for CGT?

    Thank you.

    #2
    That would be a 'gift with reservation' so the value of the property would remain in your estate for any IHT calculation. Your 'child' would also be liable for CGT if/when they sell the property.
    You would also loose your PPR relief and Lettings allowance so you need to run some numbers to see where you are. Read HS283 on the HMRC web site. Regards Peter

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      #3
      Thank you. Just had a read. I don't think I will go down that route.

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        #4
        You need a quick conversation with a solicitor about a family trust.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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