Hope value
Posted: Mon Jun 19, 2017 12:08 pm
Hi All,
My client bought a plot of land back in 89/90 for £30k. He had planning permission and built his own personal residence on 2/3rds of the land purchased.
It appears that he did not have planning permission to build on the remaining 1/3rd.
However, in 06 planning permission was granted and he built a further residential property that was let as a " furnished holiday let"
Client seems to think that the 1/3rd plot value would have been valued at £80k in 2006 with planning permission attached.
The furnished holiday let has now been sold.
Regarding my CGT calculations -
Would client obtain any uplift "hope value" for the base cost of the land as planning permission was obtained - The land subsequently sold with a furnished holiday let business attached?
Thoughts appreciated,
simpsonite
My client bought a plot of land back in 89/90 for £30k. He had planning permission and built his own personal residence on 2/3rds of the land purchased.
It appears that he did not have planning permission to build on the remaining 1/3rd.
However, in 06 planning permission was granted and he built a further residential property that was let as a " furnished holiday let"
Client seems to think that the 1/3rd plot value would have been valued at £80k in 2006 with planning permission attached.
The furnished holiday let has now been sold.
Regarding my CGT calculations -
Would client obtain any uplift "hope value" for the base cost of the land as planning permission was obtained - The land subsequently sold with a furnished holiday let business attached?
Thoughts appreciated,
simpsonite