What are the most effective strategies for gifting a second property to my adult children now to mitigate inheritance tax, considering I want to retain some rental income?
Quick Answer
Mitigating Inheritance Tax (IHT) on a gifted second property while retaining rental income is challenging, as HMRC views retained benefits as a 'Gift with Reservation of Benefit'. Structures like a Declaration of Trust or Gift and Leaseback exist but require expert tax planning to avoid IHT pitfalls.
About This Topic
Learn how to navigate Inheritance Tax when gifting a second property to adult children in the UK. Understand 'Gift with Reservation of Benefit' and CGT.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
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