Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
My wife and I have in addition to our own property three rental properties, owned outright as tenants in common. We wish to minimise our IHT liability for our two children. We have been advised that if we give them half of the properties as tenants in common (i.e. a four way split) and do not share the rental income proportionally then the Inland Revenue will still look upon the properties as “ours” for the purpose of IHT. Is this correct?
Would the same apply in a limited company of which we were four equal shareholders?
Similarly would there be an issue with my wife and myself taking the rental income (as a salary from the company) and not the children?
Would in that case the children’s shares in the company, which would have been gifted to them, fall outside of the IH liability after seven years?
All advice or direction gratefully received.
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