Mobile home site - trust - holdover - private residence
A client has transferred a mobile home site into a discretionary trust. Of the 20 homes on the site, 3 have been lived in by the client at different times over the years. The individual homes are owned by the tenants so it is really only the land that has been transferred. Private residence relief was claimed when the two earlier homes were sold to new owners so I assume that no further relief can now be claimed on the disposal of the element of the land on which those homes were sited. However, our client will continue to live in the third home and will pay a market rent for the site to the trust. Do readers agree that private residence relief is available on the underlying land relating to the third home on being transferred to the trust?
We have been asked to assist in the preparation of holdover relief claims. As the chargeable gain relating to the third private residence is covered by the annual exemption, we do not wish to include this in the claim. do readers agree that it is permissible for the overall disposal to be split so that the holdover relief claim only applies to the other 19 sites and the trust will therefore acquire the land relating to the residence at current market value for CGT purposes?
Bearing in mind that the overall site includes recreational land and roads/paths and has planning consent for just the 20 homes, do readers feel that the apportionment of the property between the residence and the other sites is simply 1/20th of the total value?
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