Giving away assets \u2013 is that a good idea?<\/p>\n
Many clients are worried that their children will never be able to afford a house. The answer many come up with is that they become the bank of Mum & Dad. Whilst you may be able to afford to help your children, there are various issues that have to be considered before the money changes hands!<\/p>\n
\u2022\tMaking a gift can have an impact on your Capital Gains Tax position (often termed as gift tax!)
\n\u2022\tA large gift could be a Potentially Exempt Transfer for Inheritance Tax!
\n\u2022\tIn some cases the gift could even be subject to Income Tax (under the Pre-owned Asset Regime).
\n\u2022\tThe tax position will be different depending on the assets you are going to give away. <\/p>\n
Please be aware that cash will be treated differently from physical assets.<\/p>\n
And these are just the potential taxation issues that must be considered!<\/p>\n
Making a gift is different from making a loan to a child, which will have impacts on not only your personal tax position. But will have a direct impact on your Will provision. If the money you are making available to a child is to be a loan and NOT a gift the rules again will be different.<\/p>\n
So if you are seriously thinking of being the Bank of Mum and Dad, call me first to ensure that your gift does not have any unforeseen complications. <\/p>\n","protected":false},"excerpt":{"rendered":"
Giving away assets \u2013 is that a good idea? Many clients are worried that their children will never be able to afford a house. The answer many come up with is that they become the bank of Mum & Dad. Whilst you may be able to afford to help your children, there are various issues […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-561","post","type-post","status-publish","format-standard","hentry","category-blog"],"yoast_head":"\n