HOUSE BUILT ON PARENT'S LAND

Discussion in 'Wills, inheritances and gifts' started by Dexterm, Aug 17, 2018.

  1. Dexterm

    Dexterm Registered User

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    7
    HI,

    Looking for advise on now what seems to be a complicated matter...

    My father gifted a plot to build a house on to me and my wife back in 2005. There was no actual transaction though. We got planning and started building back in 2009 at a slow pace with things that were happening in the economy at the time. We moved in towards end of 2011.

    We have recently looked at getting the 'site' transferred to me/us. I thought it would just be a transfer of site that could be sorted through the reliefs of a parent gifting a site to one of there children i.e. no CGT/CAT for under 1 acre and under 500k value.

    The Issue now it would seem is that because there is a house on the site everything changes, i.e. now its transference of a residence of considerably more value although we paid to build it (Self funded and I did most of the work myself).

    Could anyone shed any light on what the implications are here?

    Many thanks
     
  2. dereko1969

    dereko1969 Frequent Poster

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    2,581
    What does your solicitor say?

    Would seem it is as you state, you will likely be liable to tax.
     
  3. Dexterm

    Dexterm Registered User

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    7
    Initially he seems worried about the stamp duty and the value of site. We got it valued as agricultural land so low. This could be revalued as a site to build a house if necessary no problem with that. With regards the CGT/CAT he does not seem this to be an issue as 'how can we be expected to pay tax on what we have spent' but he is not an Accountant and I have my concerns. So looking for further advice.
     
  4. RedOnion

    RedOnion Frequent Poster

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    1,675
  5. Dexterm

    Dexterm Registered User

    Posts:
    7
    Its a long time ago now but I would have said yes as we had to show local need/tie to the area in order to get Planning.