Development land gift

[jvaughan90]

Hi, just after a little bit of advice.

I have a piece of land that currently has an option agreement with a developer. The land was a gift to me and my sister from my father over 25 years ago. The developer thinks we will have planning permission on the land within 6-9 months, I was wondering if there is anyway for us to save on the big tax bill we will receive when the land sells.

Is it possible to gift the land to both of my sons so less tax is paid?

Or any other possible avenues to go down?

Thanks in advance for any advice

[maths]

Is it possible to gift the land to both of my sons so less tax is paid?

Not really. The land has development potential and any gift by you to sons will be based on market value which would include this development potential and so you will not save any CGT. Had the gift been made some years ago then possibly some CGT would have been saved.

A gift to your spouse might be considered but if the option agreement has already been signed this route is unlikely to succeed this late in the day.