There are many pitfalls when purchasing a second property as an inheritance or a source of income, what would be seen as the correct route to take in terms of passing ownership on to a beneficiary can be a complex subject. The variances in what it will cost you in terms of taxes and interest rates etc are mindboggling. This overall jumbled and incoherent article tries and fails to gave a clear answer as to the best option
Key Takeaways:
- You need to take into account inheritance tax and capital gains tax before purchasing a property.
- Anyone who already owns a property, who is buying another one, has to pay a surcharge of 3%
- There is a way that you could make your daughter the beneficiary of a trust so no stamp duty could be payable at all.
“Should we transfer the property to our daughter now, put it in trust, incorporate it or keep it in our own names and leave it to her in our will”