.png)
.png)
My client has separated his house into two flats and has given one of them to his two daughters for inheritance tax mitigation reasons. He has been advised to make sure that he retains no benefit in the flat. The older daughter A is just 18 and lives in it, but the younger daughter S is 16 and still lives downstairs with her parents. S's share of the lease is in the name of my client, her father, as bare trustee.
My client has separated his house into two flats and has given one of them to his two daughters for inheritance tax mitigation reasons. He has been advised to make sure that he retains no benefit in the flat. The older daughter A is just 18 and lives in it but the younger daughter S is 16 and still lives downstairs with her parents. S's share of the lease is in the name of my client her father as bare trustee.
While S is not living in the flat A has taken in a lodger who pays rent. This helps with the household expenses which are being paid by A and not by the father. The rent would be entirely covered by the rent-a-room relief.
The problem is that presumably half the rent 'really' belongs to S. It would then derive from her father's gift...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
