Buying a property in a childs name & CGT

If you buy a property for the benefit of one of your children (eg for them to live in) you should consider the future CGT position if you transfer it to them. Any interest in the property owned by you would be subject to CGT given it's not your main residence. If the property was purchased in your childs name he would qualify for principal private residence relief on a future disposal. If you wanted to retain the legal title in your name there are a few options to retain ownership whilst still having the CGT exemption. One option could be as a bare trust for them (ie legally owned by you but a nominee or bare trust agreement drawn up to show beneficial entitlement to them). If they were the beneficial owner this would avoid CGT on a transfer of the legal interest to them in the future. Another option would be to hold the property via a trust for their benefit (eg you/you and your spouse own legally as trustees with your child occupying as a beneficiary under the terms of the trust). A future transfer to them would also be free of CGT as it's their main residence.