Hi All,
My client has acquired his late father's home at probate. He is currently residing at the property. In the next few years he is looking to develop the plot and either sell it as it is with planning permission to a property developer or demolish the site & self build 4 new homes.
The base cost for CGT purposes is probate value. But once planning permission is obtained then the market value will increase significantly. Regardless of this fact is it still the probate value at date of death with any hope value attached that remains the base cost for CGT?!
I could substitute the sale proceeds for the probate valuation s .274 but this would create additional IHT so would be pointless.
Might PPR relief be denied on obtaining planning permission on the grounds of an intent to make profit?
If my client decides to demolish the house and self build 4 new homes then he is trading as a property developer.
So, in his accounts do I bring in the probate value as stock or is it the higher mv of the levelled site with planning permission??
thoughts appreciated
simpsonite
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