Taxation logo taxation mission text

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

Helping house

11 March 2014
Issue: 4443 / Categories: Forum & Feedback , Admin , Capital Gains , Only or main residence

A taxpayer has moved from his main residence to another property and wishes to let his father occupy the old house for the foreseeable future

My client and his wife are moving from their present house which has always been used as their main residence. They have purchased another property which will then be their new main residence.

My client wishes to let his father occupy his old house for the foreseeable future and I understand that the father may also take a lodger into the property. What is the best way to mitigate capital gains tax on a future sale of the old property? My understanding is that the client will not charge his father rent and this makes me wonder whether the residential lettings relief will be due.

I did wonder about whether the property could be held in trust for the father so that relief might be due but obviously the client would like any proceeds from a future sale of the house to be legally his rather than his...

If you or your firm subscribes to Taxation.co.uk, 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 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon