Clients are purchasing a property in Portugal that they plan to purchase in the name of their three children. I cannot find anything that suggests that this would not be a PET. Other than advising them to take local advice about how this form of ownership would affect them in Portugal, is there anything else I should be thinking about from and Inheritance Tax perspective?
Paul Mounce
Gosschalks
It will be a gift of the money as a PET, but there will also likely be a GWROB (by associated operations) if the parents plan to use it-unless they pay a market rent. May be better to buy themselves and give away a share later.
If the children do not own a UK property yet, it will increase their SDLT when they do.
Advice in Portugal needed as you say, and also the children need to review their Wills.
Simon Northcott