Is this a crazy idea? PILs live 100s of miles away currently in a relatively cheap area and want to move to be nearer us, a very expensive area. We wondered about buying a flat for them to live in - they would pay us rent out of the cash they get for selling their house. Is this a nifty way of avoiding inheritance tax or would tax on second property rental income be higher? We get on really well, they are currently fairly active with no particular health problems (in 70s) so would hope they have another 15-20 years.