9:24 AM, 31st July 2020, About 2 years ago 11
A friend wants to gift his own residential property to his son and move into a property he has been renting out. The son, however, has some issues and is not willing to accept the gift of the property for the time being.
The friend is contemplating gifting the property to his brother, who would move in and reside in the property as his main residence and at a later stage gift it to his nephew when the latter is ready.
There are no family issues and the matter is straightforward and agreed between the brothers. Can anyone, however, see any financial aspects that may be a problem?
Since it is a residential property there should be no CGT liability when gifting to the brother. There is no mortgage on the property, hence no stamp duty arises.
Similarly, since the brother will be residing in the property no CGT or stamp duty should arise at the second transfer from brother to nephew.
Or is something being missed?
All comments welcome and greatly appreciated.