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Where Taxpayers and Advisers Meet

Hope value

Posts: 103
Joined: Wed Jun 24, 2009 11:58 am

Hope value

Postby simpsonite » 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,


Posts: 7895
Joined: Wed Aug 06, 2008 3:25 pm

Re: Hope value

Postby maths » Mon Jun 19, 2017 7:38 pm

The base cost of the land would simply be price paid (or if part of a larger plot an apportionment would be necessary).

If subsequently planning permission was obtained then this merely inflates the value of the land but does no increase his base cost.

Fees incurred in obtaining the consent would, however, increase the base cost.

Posts: 103
Joined: Wed Jun 24, 2009 11:58 am

Re: Hope value

Postby simpsonite » Tue Jun 20, 2017 12:48 pm

ok, thanks for your input.
Much as I thought.
Cases with "hope value" that I have dealt with have based around probate .


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