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Where Taxpayers and Advisers Meet

Multiple Property Tax

Tombo1
Posts:13
Joined:Fri Apr 01, 2016 1:12 pm
Multiple Property Tax

Postby Tombo1 » Wed Feb 17, 2021 8:06 am

I am hoping people can give advice on a slightly tricky area.
My son wants to buy a plot of land that has a main house, a tumble down house and a potential building plot. It is all being sold in one piece so will need titles separated and values of each plot worked out. He wants to refurbish the main house and live there. His Uncle is lending him the money for the purchase. His Uncle resides in HK.
Firstly how does he value the separate plots once split?
What is the most tax efficient way for him to renovate the main house that he wants to live in, and build the tumble down and build on the other plot? He recognises he has to pay tax on the two side projects that are not his main residence but is being given different courses of action as the most tax efficient. Is it CG tax or income tax he will need to pay or both?
I look forward to your responses.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Multiple Property Tax

Postby pawncob » Thu Feb 18, 2021 12:46 pm

The development will be subject to income tax at the appropriate rate. He will have to obtain a professional valuation for each plot to determine the market values.
With a pinch of salt take what I say, but don't exceed your RDA


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