Wealden Times | WT210 | August 2019 | Restoration & New Build supplement inside

Legal
A Wise
Move?
Financial Adviser Steven Aslett from NFU
Mutual Ashford, Tenterden & Whitfield explains
how grandparents and parents can invest in
property to support their family members
How can i help my children/grandchildren
get on the property ladder?
The most simple way to help is to gift or loan a lump sum.
The first step is to be clear whether you are gifting or lending
the money. If you are gifting it’s important to remember that
you will no longer have any call on the funds if you want
them back in the future. If lending the money you should
put it in writing so that everyone is clear when and how
the money will be repaid and what would happen if either
party died. The document should also set out if the money
is repayable on demand or over an agreed timescale. If you’re
charging interest, this will also need to be declared to HMRC.
Gifting money to your relatives can help reduce any future
Inheritance Tax liability, whereas any outstanding loans will
continue to be included in your estate.
is it best to buy in my name, or
gift them a sum of money?
There is no right answer, it will
depend on your circumstances. The
advantage of buying the property
in your own name is that you
retain control. However, there
are a number of disadvantages.
Buying a second property means
paying an additional 3% on
top of normal stamp duty rates,
(for example, buying a second property for £200,000
would result in a bill of £7,500, whereas a first-time buyer
buying the same property wouldn’t pay any stamp duty.
When you come to sell or gift the property in the future,
129 wealdentimes.co.uk