UK Landlord Forum / Life

I own a property outright which is currently rented out.

I am a basic rate taxpayer.

I want to pass this onto my son, in the short-term he will continue renting to the existing tenants. In the future he might move in himself, sell to buy another residential home or just carry on renting it out.

The gain on the property will result in a tax bill of around £22,000 which isn't ideal.

I don't want to create a limited company as I don't think it offers enough advantages other than slightly lower income tax.

My son is currently a student so all the rental income will fall within his tax free allowance.

I think option 1 is to do the transfer as a gift and pay the CGT. In that case does my son have to be the landlord or can I carry on doing the management and having my name on all the rental documents, gas safety certificates, deal with any compliance matters etc.

Option 2 to avoid paying CGT for a few years could be to make my son the landlord, he receives all the income and completes a tax return. On my tax return I declare 1 less rental property. However I think HMRC insist on the legal owner also being the landlord?

Can anyone suggest any other viable options?

I did speak to an accountant who suggested setting up a FIC or limited but I don't think it's worth it, plus I would have to pay 7% SDLT on top of the CGT.

Any opinions would be appreciated