I have a client who has some land in Pakistan and he wants to sell the land in Pakistan and bring all the funds here in UK. The plan is to transfer the funds to his children so they can buy a property here in UK.
The land was not in use and it did not earn any rental income so the land was never declared to HMRC and HMRC is not aware of the land existing. The total value of the land is around £1 million and it was inherited about 25 years ago when the value of the land was probably £50k. The client is UK resident and UK tax payer.
I would like to know if there are any ways the client can avoid Capital Gains tax and if there any scheme available. If not then how much will be the CGT liability and what can be done to reduce it.
Any help will be greatly appreciated.