My Father has a parcel of land which at present is the end of his garden (private and main residence). He has just gained planning on the land for 3 houses. He does not wish to finance the build himself and has therefore offered to gift it to my company to build the houses. He is a minor shareholder (11% of shares) in the company but does not take any dividends.
What are the tax implications here? Is there SDLT to pay on the market value? As I understand it there is not Capital Gains Tax to pay as the land is at present his garden.
I have thought about him giving the value as a 'Director Loan' but this could have implications for Inheritance Tax as the loan would almost certainly not be paid back (as to do so would result in the build becoming not viable economically).
We could of course set up another Ltd company but I am not sure this would make any difference to any potential tax implications??
Any and all help/advice would be greatly appretiated.
Many thanks for your time folks.