My parents own a house (mortgage free) worth about £650k. The land is about 1/4 acre in size. It has been their principle private residence since 1984. They do not own any other property. The house has a garden big enough to build a second house on, and my parents have successfully gained planning permission to build the house. Our plan is now for my parents to gift me the garden land and I am going to build the house for my family and I to live in as my own principle private residence.
I understand fully about inheritance tax and the 7 year rule, and also that stamp duty will not be due because it’s a gift. But may I ask:
1) Is either myself or my parents subject to capital gains tax at all? My hunch is no because:
a) They are gifting me part of their PPR to be my PPR, and:
b) I will be selling my current property (the only property I own) during the build process. Which should be fine because I believe I would need to sell my current property within 18 months from the point where the new house is finished before I’m liable for CGT.
Of course, best to check if I’m correct on this. Furthermore, may I ask:
2) When is the best time to transfer the land? I’m thinking ASAP to get the 7 year IHT clock ticking.
3) What are the actual steps to transferring the land into my name (e.g. transfer at land registry / notifying HMRC)? I'm presuming it can be transferred into both mine and my wife's name (tenants in common) as we will jointly own the house together.
4) I’ll probably need a professional to help with the land transfer as I’ve never done it before. What type of professional do I actually need? And what are the typical charges for this? I’m based in the South East.
Thanks very much in advance.
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch