If I loaned a substantial amount interest-free to help my child buy a house to be repaid in full on its subsequent sale, could a proportion (relative to the original loan to value) of any capital gain on the sale be gifted to me by my child?
Arthur Weller replies.
If I understand correctly, your child owns this house. If so, if you look at www.gov.uk/hmrc-internal-manuals/capitalgains-manual/cg10720%20 you can see that the capital gain is only attributable to your child, and not to yourself, even if you were a lender entitled to the asset by way of security (e.g. you had a charge on the asset).