Gift of land

[stohs]

I was gifted 6 acres of agricultural land 3 years ago. If I get planning permission on some of this land and my parents do not survive 7 years from date of gift, is tax payable on the value of the land at the time of the gift or the potentially enhanced value with planning permission?

[Lee Young]

It is the value at the time of the gift, though HMRC may argue that there was some uplift on any valuation submitted at the time on the basis of the hope value in the future development of the land Hopefully this has been, or will be, factored into the valuation you would propose using.

[maths]

Agree with Lee.

Would the value of the land fall within parents' nil rate bands; in which case no IHT on their deaths on the gifts but would eat into their nil rate bands on their death estates.