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Little and large

17 November 2009
Issue: 4232 / Categories: Forum & Feedback
A mother and father intend to build and move into a property in the grounds of their existing home. Their previous property will then be given to their adult son

We have a case where a mother and father own and occupy a large house with substantial grounds. They intend to build and then move into a smaller property (with garden).

This property is to be built within the grounds of the existing house. They will then gift the large house and the rest of the grounds to their adult son.

The parents have been made aware of HMRC’s de minimis guidelines regarding their future enjoyment of the gifted property so as to avoid reservation of benefit (GROB) problems.

However the planning permission for the new property contains the restriction that ‘…the [new] building... shall not be occupied ... other than for purposes ancillary to the residential use of the dwelling known as [the existing large house]’.

The local council is aware of the parents’ intentions so this restriction does not rule out separate ownership per se...

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