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Happy holidays

18 September 2012
Issue: 4371 / Categories: Inheritance Tax , Land & property
An elderly couple have a holiday home that they are using less and less and propose to give a 25% share to their children, with possible future transfers

My clients (a couple) have a holiday home held as joint tenants and showing a substantial capital gain.

They have health issues and are therefore using it less and less and this may stop completely in the next few years.

My clients’ son and his wife who have their own young children are using it more and more.

They propose to give 25% of the property to their son and his wife; this should not generate a capital gains tax liability because it will be covered by their two annual allowances.

The gift will be documented at the Land Registry and the running costs – council tax water rates services – will be in the name of both families and will be paid from a joint family bank account.

The remaining 75% of the property will be held by my clients as...

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