CGT tax on transfer on ultimate sale of land
The house and land were purchased two years ago and is owned 100% by the client's son. The first point is if the grounds do not exceed half a hectare, is a sale to anyone (including my client) exempt under PPR? I believe it is.
I believe it is legitimate to sell two thirds of the plot to my client and wife. Building work is then likely to commence and at some (possibly intermediate) stage the plot will be sold to a third party. Thus three CGT exemptions can be utilised in the tax year of the sale.
I believe the gain for each parent will be share of sale price less share of enhancement/building expenditure less value of purchase from son.
Is this feasible does anyone think? Anything, in others' experience that I should be wary of?
- Inflation and fees 1,242 21
- Cost of demolition of a shed - revenue or capital? 727 20
- US LLC - anomaly in UK and US treatment 62 3
- Basic Tools and PAYE succession 111 1
- Advice please! 360 2
- VAT on new builds 136 3
- incorrect old p60 180 3
- CGT query on investment property sale 107 1
- Related party disclosure 60 1
- Summarise excel cashbook by month 320 6
- Are accountants facing a doomsday scenario? 1,909 28
- Redundancy Pay 441 6
- Entertaining - am I missing something or is my client taking the mickey 707 6
- Sage Priority Support 117 2
- HMRC interview re client authorisation 512 4
- Becoming a subcontractor to Accountancy Practices 361 2
- Rental business through company without owning the property? 146 1
- Pensions Auto-Enrolment when no computer/internet access 138 1
- Bank Interest Held by Solicitor During Divorce 155 1
- Missing tax return 210 2