Malcolm Finney takes a look at GWR and POAT issues on second homes.
Planning for property transfers, whether by way of sale or gift, is surrounded by a raft of tax provisions including the inheritance tax (IHT) gifts with reservation (GWR) provisions, and pre-owned asset tax (POAT). Capital gains tax issues potentially include holdover relief and specific provisions for non-residents owning UK property.
This article looks at some of these provisions as they impact on property held as second homes, sometimes referred to as holiday homes.
Interaction of GWR and POAT
The GWR provisions are designed to preclude a person from gifting an asset, yet thereafter still being in a position to continue enjoyment of the asset.
It is possible to circumnavigate the GWR provisions with careful planning, and as a consequence the POAT provisions were
