Principle Private Residence and sale of part of the garden

A mother and son have inherited a property 50/50.

Both own properties, however, for the sake of this issue, the son has elected to have his PPR at the inherited Property and declare his property as a buy to let.

Part of the Garden has the potential of being sold off for £130k as a building plot.

If the proceeds are split 50/50 then the mother will attract CGT on her half I assume. If all proceeds went to the son, then can this be avoided? There is the problem that the property will be sold at some point which will then raise another CGT issue (although we suspect the IHT valuation will be greater than the property sale due to the proximity of another house so this may not be the case).

My more simple solution is to transfer the mother's share to the son, it will cost a couple of thousand in stamp duty but then none of the potential pitfalls above seem to be in play.

Any feedback appreciated as usual.

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mn2taxhbj |

Mother's share to Son

justphil |


simonmercer |