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The recent query All manor of tax and its replies raised the question of why a pre-owned assets tax charge would apply in the circumstances of the query and not if the parent had gone to live with her daughter and then given them a similar sum of money to spend on property improvements rather than acquisition.
As mentioned by Lacuna Tolley’s Tax Digest 33 explains this as follows.
‘The contribution condition is met where at any time after 17 March 1986 the chargeable person has directly or indirectly provided otherwise than by an excluded transaction any of the consideration given by another person for the acquisition of:
- an interest in the relevant land; or
- an interest in any other property the proceeds of the disposal of which were (directly or indirectly) applied by another person to the acquisition of...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
