Gifts can be tricky

A reader asked the Daily Mail if there would be any issues about his and his wife’s plan to buy homes jointly with their two sons.

The couple already owned their own home and since these would be outright purchases with no mortgages it sounded straightforward. But the experts consulted by the Mail raised two tax issues. Both husband and wife could be liable to capital gains tax on the profit on their share if a property was sold or if they gave their shares to their sons. Plus, the value of the parents’ shares would remain within their estates for inheritance tax purposes. The lawyers suggested a trust might be a better way to achieve their objectives