15:38 PM, 14th October 2021, About 2 years ago 6
I own three BTL properties on three separate independent developments that have their own Right to Manage Companies in place. I am an active director on each of the companies, and a common Property Management Company is independently managing all three developments.
My son has owned and let a property, in one of these developments, that I have been managing for him since newly built in 2004. He does not wish to rent the property and has been trying to sell it since it was vacated in April 2021. The property is in very good condition with over 100 Years Lease still remaining. The property has been on sale through a couple of agents, who have not been able to get a suitable buyer to this date. We have had a couple of companies offering to buy at BMV for cash (at 70% – 80% market value).
I have told my son, and he is happy, for me to consider buying his property for cash at BMV price being offered by the Independent Companies.
My question is:
Would such a transaction for me to buy my son’s property at BMV, at the price being offered by the independent companies, be considered to have been at arms length, i.e., not a related party transaction, and not cause any problems with the Inland Revenue at any stage?
I would appreciate members comments and advice.
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