Tax efficient ways to gift property

If you're buying property for someone else - a child or elderly relative perhaps, make sure you structure the purchase correctly for tax purposes.

If you have a child or elderly relative who needs somewhere to live and have cash in the bank, falling house prices and low interest rates may tempt you to buy. But make sure you structure the purchase correctly for tax purposes, says Mark Bridge in The Times.

The key issues are capital gains tax (CGT) on any future disposal and income tax on rental income. If you are rich enough, and intend to help your children, the ideal solution is to gift a property outright, says Tony Mudd of independent financial advisers St James's Place. As long as you survive for seven years, the gift is exempt from inheritance tax (IHT) and your children can live rent-free.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.