Q: My wife and I want to help our kids buy property, but our money is tied up in the family investment company. My daughter has enough to buy a small apartment, but we want to buy a larger one via the company for her. She would pay the company market rent. The arrangement seems fair to her sibling, as when we die, they both would inherit the property through shares in the company. We would use the same strategy in buying property for her sister when required. What are the downsides? – Theo
A: The highest potential cost is capital gains tax, says David Simon, principal adviser at Integral Private Wealth, as your daughter would not qualify for the main residence exemption.
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