Helping a family member buy a house? Consider the tax implications
14 December 2022
Whether it be parents supporting their children in securing a first mortgage, or adult children helping with financing of a house move for elder relatives, there are a whole host of tax implications to consider. For example, if a residential property is acquired for another family member, this can trigger an additional stamp duty cost (3% stamp duty land tax) on acquisition and a capital gains tax (CGT) liability when the property is sold (where the owner does not live in the property as their main residence).
There are all sorts of ways of ensuring these tax traps are protected against, whilst respecting the substance of the arrangement and wider commercial impacts (such as third-party lending attitudes).
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Our Private Client team advise clients on all things property, including a full suite of inter-family ownership structures. Feel free to get in touch.
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