I am a French citizen and I have three British children aged 18, 13, and 11. I am no longer a UK resident. 

I am willing to buy a three-bedroom property for my children in Birmingham. I will be able to buy this property without a mortgage after getting my share of my father's estate (two flats in Paris). I am looking for the best and least costly option so my children can all own this house as they do not have an address in the UK right now and are willing eventually to come back and live in the UK. I need advice on the procedure (and eventually I will need assistance once I am ready to buy the property). What is the best option? I should be able to purchase by January 2024.  

Arthur Weller replies:  

There is no reason why you cannot go ahead and purchase this property in your own name. However, you should be aware of a few things. Since you are not UK resident, you will have to pay an extra 2% stamp duty land tax (SDLT) (see HMRC’s Stamp Duty Land Tax Manual at SDLTM09850). Children under 18 cannot be legal owners of property in this country, but they can be beneficial owners. So, you could purchase this property in your own legal name but in a bare trust for your children. This will help with UK inheritance tax. However, if you do so, it will impact your children’s eligibility in the future to claim first time buyer’s relief from SDLT. If you rent out this property, you will be subject to UK income tax on the rental income.