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Property IHT

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Aethelflaed Tue 05-Mar-19 11:49:30

Hi all,

I've been considering options with regard to rapidly releasing the value held in a property. As far as I can tell, other than selling and downsizing, it may be possible to sell the home, at an independently valued market price, while carving out a lease.

I'm aware that the recent Hood vs HMRC ruling proscribes leases as a reservation on gifts. Does this take any effect on sales? I've come across the suggestion that it might be instead necessary to occupy the 'license to occupy'. Is there any truth to this?

Any advice would be much appreciated,

Many thanks

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Charleygirl5 Tue 05-Mar-19 12:32:15

I think you need professional advice.

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M0nica Tue 05-Mar-19 13:38:40

I do not fully understand your question, but I do know that if you sell your house, but still occupy it, you must pay the market rent to whoever owns it and that HMRC will check annually. Otherwise the house will be treated as still owned by you for IHT purposes.

If you lease it back, the HMRC will want evidence that you paid the full current leasehold value of the property.

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