As a retiree, former director and non-accountant, the following situation could almost be a question for an accountancy exam paper.
A spinster living nearby passed away, and her house was sold at auction for £400,000 (figure rounded) with an overage of 25%, conditional on a garden plot ever get planning permission to build. Planning had previously been refused on the grounds of back-fill rather that in-fill.
What are the tax implications?
HMRC always demand IHT upfront.
So, how is the potential £100,000 taxed?