Hi, wondering if someone could confirm my understanding. Client has operated a small holding farm business for many years. Approx. 20 years ago client inherited land at very low value and has since that date used the land for the business, approx 5 years ago he built a barn / storage facility on the land, again using it solely for business. I understand that he has planning permission to convert the barn to residential property and he is now looking to transfer the land/ barn to his daughter (gift - no monies will exchange hands). Am I correct that he will be able to claim gft relief and the daughter will effectively "inherit" his base cost - she will not trade but intends to immediatley build on the land, will this make any difference? Also what will happen if one day she sells the residential property - presumably she will be covered by PPR, all seems a bit too good to be true and it's nagging me that there is some anti-avoidance rule?
Any help would be greatly appreciated, thanks.
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ITA 2007 517A to 517U could potentially impute the entire gain, as income, to father! This is an esoteric piece of law.
Something about playing with fire?
ITA 2007 517A to 517U could potentially impute the entire gain, as income, to father! This is an esoteric piece of law.
Something about playing with fire?