Pre-Owned Asset (POA) charges
POA charges should be considered if the gift was by way of cash, which is subsequently used to buy an asset from which you still derive benefit. There will be a continuous Income Tax charge (a POA charge) on you for as long as you still receive this benefit. For example, if you’re living in the property rent-free, but market value rent is £25,000 p/a, you will be taxed to Income Tax on the £25,000. If the original cash gift only provided partial consideration for the purchase of the property, the amount chargeable to Income Tax is apportioned accordingly. You can make an election to be treated as having made a GWROB as opposed to suffering a POA charge, but one or the other will apply so long as a benefit to you is retained.