Dead Confused

Dead Confused

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my client (aged 70) has a plot of land, used in his farming business, which could have planning permission granted for a caravan site (holiday lets etc).

As soon as planning is granted the site value will increase to £2m.

Client does't know whether they will develop and sell or just sell with planning permission.

Options are sell and get max BATR but then have 70 yr old with £2m to get rid of before IHT kicks in.

Develop and hold until dies and rely on BPR.

Gift to daughter (recovering from cancer) so she could develop and sell in future (2 yrs +) but if she dies or sells in the two years she will have IHT and CGT problems.

I think leave it with father but can't convince myself.

Help.

David Melia

Replies (2)

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By The Minion
19th Aug 2004 10:56

Thanks Jon
The basic problem is that they simply don't know what they want to do.

I've done the lifestyle bit, but they are farmers and seem to be genetically predisposed to not wanting to pay any tax!

I have set out the tax options but stressed that really they need to decide where they want to be, and then i can get them there.

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By Jon Stow
18th Aug 2004 18:21

Is tax the main issue?
Sometimes we end up worrying too much about tax issues whilst forgetting commercial aspects, and I think in this case a question of lifestyle.

Your client is 70, which is not necessarily terribly old these days, but does he want to run or preside over a holiday lettings business or does he want £2M to help him have a happy retirement and look after his daughter, who has not been well, and perhaps other family? If he has £2M now and is in good health there is still plenty of sensible IHT planning to do depending on requirements.

The main consideration, though, is how he wishes to spend his life.

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