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Where Taxpayers and Advisers Meet

Cgt on a gift of land?

Barrywa
Posts: 3
Joined: Sat Jan 26, 2019 1:41 pm

Cgt on a gift of land?

Postby Barrywa » Sat Jan 26, 2019 2:05 pm

My father is going to be gifting his three siblings the old family home splitting it into three plots. Plot one has the old family home on it, derelict for 25 years and in need of demolition, the other two plots are just land with no access other than through plot 1.

Value when he got it was 40k and value now is around 150k (been surveyed just awaiting report) so cgt due on 110k which seems a bit wrong as he’s making nothing and we are basically just getting our inheritance a few years early. Father has no income other than basic pension and no savings so we will be footing the bill however it’s a large chunk out of our house building fund.

Is there anything else we can offset against the gain or any way to defer the cgt to us? Our accountant basically has said he no’s no way round it and suggested speaking to a specialist at the cost of 2k which would be money spent if he saved us on the tax but could make no guarantees.

Any help appreciated and were in Scotland if it makes a difference.

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: Cgt on a gift of land?

Postby bd6759 » Sat Jan 26, 2019 4:03 pm

I hope you are not your father's sibling!

What is the necessity to gift the land. What is it you intend to so with it?

Barrywa
Posts: 3
Joined: Sat Jan 26, 2019 1:41 pm

Re: Cgt on a gift of land?

Postby Barrywa » Sat Jan 26, 2019 6:27 pm

I’m the siblings partner that has to foot the tax bill

We intend to build on our plot which is the one with derelict house on it.

The derelict house was the parents main residence originally until they had to move out as it was uninhabitable 25 years ago if that makes any difference?

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: Cgt on a gift of land?

Postby bd6759 » Sun Jan 27, 2019 12:26 pm

Your partner cannot be his father's sibling. A sibling is a brother or sister.

What do you intent to do with the house you build on it? Can you do this with the father's permission rather than have the land given to you?

There will be some CGT relief available for the period in which the father lived in it.

Barrywa
Posts: 3
Joined: Sat Jan 26, 2019 1:41 pm

Re: Cgt on a gift of land?

Postby Barrywa » Sun Jan 27, 2019 2:42 pm

Your partner cannot be his father's sibling. A sibling is a brother or sister

I’ve been using that word wrong for a long time, replace “siblings” with “ his children”

We’re planning on building our forever home on our gifted plot and it needs to be in our name for mortgage reasons ( I presume)
Also if there is cgt to be paid it’s in our interest to get it valued an gifted when it’s at its lowest value which would be now rather than when planning permission was granted or further through the building process (again so I presume)


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