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.
- HMRC Statements 33 1
- Goodwill on incorporation low level valuations 95 1
- Tax Planning for Family and Owner-Managed Companies 2015/16 307 6
- How did you recalculate your payroll fees 1,114 18
- NEST web services & Moneysoft 402 4
- Land Registry 295 4
- Class 1A NIC on motorbike fuel 42 1
- Car benefit or not? 2,249 19
- Excel First Tab/Last Tab missing in latest version(s) 373 4
- Share capital - death of a shareholder 624 20
- Annual Investment Allowance on Van 563 12
- Cloud-based email services? 453 9
- Time recording 336 5
- Auto enrolment without a PAYE scheme? 146 2
- iris update 11.9.2 339 5
- Transfering bank balnces between old and new co. 274 8
- International priorities 182 2
- Auto enrolment confusion 1,697 37
- Company Structure 533 15
- Client tied in to accountant. Unfair contract? 2,800 38
- Self employed and HMRC Worldwide Subsistence Rates 746
- Interest paid - do new rules affect Tax Credits? 443
- Costly Accounting Software contract 383
- Directors' advances and credits 294
- Market Invoice (P2P invoice discounting) tax treatment 266
- DTA tie-breaker issue 256
- Tax on internet ad sharing income 236
- Credit against UK NI for NI paid to EEC Countries 215
- CGT for NOn UK residents 205
- Apprenticeship Levy 187