20
Feb
'No IHT issues' for homes bought with parents' help
There should not be any inheritance tax (IHT) issues when parents
help their children pay for a property, according to independent
financial adviser organisation Bestinvest.
Mortgage manager at the group Peter O'Donovan said it is unlikely
there will be IHT implications as long as the property is solely in
the child's name.
"Because the property is in the child's name - they pay the stamp
duty," he explained.
"Even when the parent uses their income to assist [with mortgage
payments] ... the property will just be in the child's name."
IHT is currently charged at 40 per cent on all individuals' estates
worth more than £300,000, as stated by HM Revenue and
Customs.
Assets - including the property itself - which are in the sole name
of the deceased individual, as well as their share of assets
jointly owned, make up the estate.
