20 Feb

'No IHT issues' for homes bought with parents' help

'No IHT issues' for homes bought with parents' help

There should not be any inheritance tax (IHT) issues when parents help their children pay for a property, according to independent financial adviser organisation Bestinvest.

Mortgage manager at the group Peter O'Donovan said it is unlikely there will be IHT implications as long as the property is solely in the child's name.

"Because the property is in the child's name - they pay the stamp duty," he explained.

"Even when the parent uses their income to assist [with mortgage payments] ... the property will just be in the child's name."

IHT is currently charged at 40 per cent on all individuals' estates worth more than £300,000, as stated by HM Revenue and Customs.

Assets - including the property itself - which are in the sole name of the deceased individual, as well as their share of assets jointly owned, make up the estate.

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