Clients are increasingly looking purchase investment properties to protect their children’s future.
In a recent case, parents wanted to purchase an investment property for their children but were concerned that the children would be at a disadvantage personally for future allowances and tax relief.
Considerations:
• The children should not lose their First Time Buyers SDLT allowance when they purchase their own main residence.
• The investment should have no impact on future Student Loan applications.
Solution for this client:
Purchase through a limited company and have the children as shareholders.
Important Note: There is never a “one size fits all” solution to investments. All advice is subject to current UK Tax and Inheritance Tax laws. Your circumstances may need a different solution.
At Calculated we take a holistic approach to our advice based on your individual circumstances and future goals.
Carefully consider your end game.
Write down all of your concerns and questions, especially the ones which sound ridiculous. Communicate these to your tax advisor in advance of your call or consultation.
