Topical Tax: PPR - selling part of the garden. By Paula Tallon

Posted by AccountingWEB PM | on Fri, 23/11/2007 - 11:42 5830 2 comments

Paula Tallon of Chiltern examines some recent questions handled by her team of specialist tax advisers.

Question:
A client, Aaron, is considering selling his home after receiving a substantial offer. However, as the garden is almost an acre in size, he would like to retain part of it, in case it has some development value.

Continued...

I forgot to say...

Charlieo | Fri, 30/05/2008 - 12:35 | Permalink

That automatic base cost uplift will fow from Finance Bill 2008 Schedule 15 if enacted, so my point (if right, and surely its not!) will be academic only.

Interaction of TCGA161 and 222

Charlieo | Fri, 30/05/2008 - 10:33 | Permalink

I agree entirely. But...

TCGA section 161(1) forces a disposal at MV on appropriation to stock, but only when a chargeable gain would have arisen on sale.

Section 223 says that no part of a gain on an OMR shall be a chargeable gain.

Therefore section 161 does not apply to gains on appropriating an OMR or part thereof for development.

So what exactly forces a market value uplift on commencement of such a trade? GAAP? Case law? ITTOIA?