It is generally easier to make lifetime gifts of second homes without infringing the GROB provisions even if the donor intends to use the property occasionally. However, it is also necessary to take into account the pre-owned assets tax (POAT) rules.

Avoiding these provisions for an existing property can be achieved using the co-ownership route with, say, both parents and children owning the property and living there for some period of time with them both sharing the costs of running the property. Alternatively, the donor can make a gift of the property and pay a commercial rent for the time spent there (see 31.1.4 above).

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