Question:
If I buy a house for my son, what are the tax implications for me and for him?
Arthur Weller replies:
Assuming he is not paying you (i.e. it is a gift), this will be classified as a potentially exempt transfer (PET) for inheritance tax (IHT) purposes. There is no IHT to pay now, and if you survive for seven years there won't be any IHT to pay later on this gift. But if you die within seven years then this will be included in your estate when calculating the IHT.
