Capital Gains Tax and homes

[Jivetime]

I know someone whose parents may want to minimise tax (CGT and IHT).

I understand that they have two homes. One is in the UK worth about �380k and one is abroad about �500k.

What is the best thing to do.

I was thinking of advising him to buy the UK off his parents cheap but soemone has informed me that then there is a disposal at market value.

I am not very brainy and all the permutations are doing my head in.

[Auzziegirl]

You need to see a good solicitor, one that specialises in this sort of thing. I, too, have heard of the "sell it cheap" to a relative option and then let the one that inherited it live rent free for the duration. Bit more complicated than that i'm sure, that's why you need to see a solicitor.

[WendyS]

This is not a situation for amateurs to advise you. The person concerned needs to consult a solicitor who is well versed in Inheritance Tax law. There are ways of setting properties in trust, but the law on this is changing all the time and your friend needs to consult an expert.