.png)
.png)
09 May 2023
POAT charge
An elderly client has gifted the following properties to her son:
- A gift of property 1 worth £0.5m three years ago. CGT paid on transfer.
- A gift of property 2 worth £0.75m two years ago. CGT paid on transfer.
- Sale of property 3 for £1m one year ago and the proceeds gifted to her son.
The son is now planning to sell properties 1 and 2 and buy a house with four floors for about £3m. Along with the proceeds received (including 3) he will use his own £0.75m to make up the difference. The idea is that the ground floor will be for the mother’s occupation (as she has mobility issues) and they are looking for a self-contained unit with its own bathroom and kitchen.
The mother is not expected to pay rent. The son will also pay any pre-owned assets tax (POAT) charge arising on behalf of...
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.
