U
Unregistered
Guest
Hi
My parents have offered to arrange to buy an investment property on my behalf. Basically what they want to do is for me to a but a property in my name (using my 1st time buyers stamp duty exemption) and they will finance it. The property or some part of it will be let. Then they plan to sell the property in 2/3 years and give me any profit that they have made to use as a deposit to buy my own house. I think this sounds like a great idea in theory but I have a few concerns.
1 - In order to use my 1st time buyers status and avoid Capital Gains Tax when selling I'm assuming I will have to live in the property.
2 - Will I be liable for tax on the rent received (either way we will be renting rooms out).
I would really like to know if other pwople have experience with this kind of thing before and what general opinions are. To me it just seems too good to be true !!!
Thanks.
My parents have offered to arrange to buy an investment property on my behalf. Basically what they want to do is for me to a but a property in my name (using my 1st time buyers stamp duty exemption) and they will finance it. The property or some part of it will be let. Then they plan to sell the property in 2/3 years and give me any profit that they have made to use as a deposit to buy my own house. I think this sounds like a great idea in theory but I have a few concerns.
1 - In order to use my 1st time buyers status and avoid Capital Gains Tax when selling I'm assuming I will have to live in the property.
2 - Will I be liable for tax on the rent received (either way we will be renting rooms out).
I would really like to know if other pwople have experience with this kind of thing before and what general opinions are. To me it just seems too good to be true !!!
Thanks.