Split of jointly owned land

Split of jointly owned land

Didn't find your answer?

3 family members bought land, obtained planning permission to build 4 houses. They have completed 1 house which is up for sale. They are each going to take 1 of the other 3 plots to build a house to live in. Each of the 3 plots has the same value. Are there any tax consequences of the transfer of the 3 plots into single names? Will it make any difference if there is a deed of partition?
ATS

Replies (1)

Please login or register to join the discussion.

avatar
By AnonymousUser
07th Jun 2006 13:56

Land split
I think that strictly your clients each make a gain when they give away their interest to one another. Have a look at ESC D 26 though and HMRC manual CG73000 as this deals with a concessionary relief for these types of situation. How are you going to tax the house that is to be sold? HMRC may refer to s 776 or a venture in the nature of trade if it is returned as a capital gain.

Thanks (0)