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Family transfers; What’s my name?; VAT accounting; For keeps
Family transfers
Capital gains tax on transfer of land and subsequent property developments costs.
My clients Mr & Mrs T bought some land about ten years ago for £130 000. The land was split into two plots (£65 000 a plot).
The couple’s two sons each built residential properties on the land and are now living in them. Each cost about £150 000 to build. Now they are valued at about £300 000.
Mr & Mrs T want to transfer the land to their sons. The capital gain for each property is therefore as follows:
- Market value: £300 000
- Costs of building: £150 000 (incurred by sons)
- Cost of plot: £65 000
- Gain: £85 000.
We believe that the costs incurred by the sons would be allowable under TCGA 1992 s...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
