Give your holiday home to the children and save IHT?
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Many parents pass their holiday home on to the children as they get older, either directly or via a Trust. This can be a good long term Inheritance Tax (IHT) planning ploy, but has serious “gift with reservation” risks to be managed if the parents want to carry on using it. There can be Capital Gains Tax (CGT) problems as well.
The overall tax position can be even more complex where the property is also offered as a Furnished Holiday Let, although on the whole this will make the IHT planning safer. This requires keeping accurate accounts and care with your tax returns.