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.
- Best Tax / Accounts Production software 856 16
- VAT on Security Services to Foreign Companies. 11 1
- I used to think HMRC contact lines couldnt get any worse................ 122 2
- Do accountants work at home? 388 9
- Furnished Holiday Lets & VAT 44 1
- Moneysoft or Sage payroll with auto enrolment? 403 8
- Rogue Accountant 3,849 58
- Where has Portia gone? 5,983 120
- How to introduce funds in to a Limited by guarantee company 53 1
- ER Relief 93 2
- 'Workers' for AE purposes 100 1
- Payroll question 245 3
- Share buyback, possible embezzlement 272 5
- Where did you buy your Fujitsu ScanSnap ix500? 102 3
- Can a trust benefit from PPR 714 6
- VAT Registration 216 1
- How do you do it 434 1
- Help 509 14
- Payments on account 339 6
- What are other accountants having for lunch? 800 21