Transferring property from parent to child

[DonnaC]

Hi,

I’m moving back in with my parents with my partner and kids. They have suggested that myself and partner buy it from them (in the next year or so), at less than market value, which we will fund through a mortgage and the difference will be a ‘gift’ from them. They will remain in the property also with a right of residence. (plenty of space). Am I right in saying that the ‘gift’ amount will be free from CAT if it’s less than the group A threshold amount? Also, they plan on gifting the amount we pay them to my brother so that he gets his share of the house now. Will he also get the group a threshold allowance on that?

Thanks.

 

[RedOnion]

Am I right in saying that the ‘gift’ amount will be free from CAT if it’s less than the group A threshold amount?

No. The gift would need to be made solely to you, as your partner is treated as a stranger for CAT purposes.
However, your parents retaining a right of residence reduces the value considerably for tax purposes, so there might not be much of a gift.

Will he also get the group a threshold allowance on that?

Yes.