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.
- The stupidity continues 813 49
- transactions after account have been closed 218 5
- What is IRIS World like? 377 9
- Land Rover Discovery 3.0 SDV6 255 Comm Auto 2 seat 349 8
- Can I claim Vat on solicitors invoices? 229 6
- Limited company director - other earnings in the tax year 266 4
- CIMA at the age of 35?? 541 10
- Offsetting CT losses against another company 241 6
- Calculating capital gains tax for non-residents UK residential property 143 1
- CIS. Why is it so complicated? 2,343 25
- New Employers Helpline 213 4
- Software recommendations 285 1
- Share transfer question 393 17
- qualifying for 1/9th tax credit on foreign dividend 193 2
- HMRC & daft penalty 2,473 19
- Overlap relief 764 19
- Pension contributions 386 10
- Do you have to declare business expenditure on a personal credit card on your P11D? 520 11
- Do you use sign up lists on your website 225 1
- Setting up PAYE scheme without UTR 296 8
- Has anyone been affected by the RBS payment breakdown? 440
- Straight line write off of Purchase Goodwill ??? 438
- WIP Software 302
- FRS 102 compliant illustrative accounts for an insurance company 291
- No payroll scheme in place 236
- CGT, PPR and transfer of equity to spouse. 234
- Do subcontractors on work for residential (student accomodation) construction 212
- Is there anything wrong with this? 206
- Small Part Disposal of Property 193
- Uncommercial property business 183