residence nil rate band

Gifting your home may appear to be a sensible solution to an imminent Inheritance Tax (IHT) bill. However, the little-known Pre-Owned Assets Tax (POAT) could leave you with a hefty bill from HMRC. You have to pay rent You are well within your rights to gift your main residence to your child. However, if you continue to live in the property, you are deemed to still be benefiting from that asset. In the case of a property, you would have to pay rent at market rate to your children. If you do not, you will be liable to pay that… continue reading