Can I Give My House to My Son to Avoid Inheritance Tax?
Gifting property to your children is a common way to transfer property to them without having to pay inheritance tax when you die. Inheritance tax starts at 40%, so it is important to understand the rules and regulations that come with gifting property to your children.
The first thing to consider is the 13 July 2022 deadline. This is the date by which you must have gifted the property to your son in order to avoid inheritance tax. If you gift the property after this date, then it will be subject to inheritance tax.
The next thing to consider is the value of the property. If the value of the property is more than the nil rate band (NRB), then inheritance tax will be due on the amount over the NRB. The NRB is currently £325,000, so if the value of the property is more than this, then inheritance tax will be due.
The third thing to consider is the type of property you are gifting. If the property is a residential property, then you must ensure that your son is living in it as his main residence. If the property is not a residential property, then you must ensure that it is used for business purposes.
Finally, you must also consider the implications of gifting the property to your son. If you gift the property to your son, then you will no longer own it and will no longer be able to benefit from any income it generates. You must also consider the implications of gifting the property to your son in terms of capital gains tax.
Gifting property to your children is a great way to avoid inheritance tax, but it is important to understand the rules and regulations that come with it. If you are considering gifting property to your son, then you must ensure that you do so before the 13 July 2022 deadline and that the value of the property is less than the NRB. You must also consider the implications of gifting the property to your son in terms of capital gains tax.