Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

POAT at bay

15 April 2008
Issue: 4154 / Categories: Forum & Feedback
Will a pre-owned assets charge arise on the gift of a house?

It has been put to us that since the introduction of pre-owned asset tax for anyone who made a disposition of property prior to 5 April 2005 and — at its simplest — continues to reside in it it is essential from that date to pay a market rent to avoid the gifts of reservation rules coming in.

In other words accepting the income tax charge on the appropriate rental value will not do the trick and keep the property out of the donor's estate.

Do readers agree please?

Furthermore we have another situation where a prospective donor plans to give away the whole house but continue to live in a separate flat within it occupying perhaps one third of the floor area.

If a market rent is paid to the donee for the use of this flat will the whole gift be...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon