Tax/Legal/Any other implications

[TDON]

Hi Folks,

I would like your thoughts/imputs on the following situation. Plus the answer I pose at the end.

Say you are from an area, where loads of people want to build but can't get planning permission. The only way they can is if they have been born and reared there. One day, someone approaches you and asks you to apply for planning permission in your name, for a house for them, for which they are willing to pay you.

Ok, first of all, I know I will have to pay tax on the money I receive, if I am willing to accept the offer. But it's not strictly CGT as I haven't actually been in possession of anything to sell. It's not Gift tax as it hasn't been a gift. So what would it be described as and what would I actually declare it as?

Next, is it ok to do this? I won't ever want to look for planning permission for myself in this area as I have no interest in it, so that doesn't worry me, (i.e. that I'll never be able to look for planning permission in this area for myself). But is it legal to do this? And what are the unforeseens that could come back and bite me later?

Has anyone else done this and do you have any advice please.?

 

[Nige]

Many of the local authorities put a condition of planning that you can't see for a number of years.

 

[jrewing]

Can't answer your question, but it may be worth noting that there may soon be changes to non-native rules imposed by County Councils in the last few years. A European body (can't remember which) said this week that the rules are illegal and discriminatory.

If this forces the rules to be revoked, you may not have to deal with the questions you raised above.

 

[TDON]

Many of the local authorities put a condition of planning that you can't see for a number of years.

Yes, you're right & thanks for that, but that's if I were to apply for planning permission and build it myself. I would not be able to sell for 3 years. But this is me apply for the planning permission and someone else building and paying for it and living in it etc.

 

[TDON]

Can't answer your question, but it may be worth noting that there may soon be changes to non-native rules imposed by County Councils in the last few years. A European body (can't remember which) said this week that the rules are illegal and discriminatory.

If this forces the rules to be revoked, you may not have to deal with the questions you raised above.

Thanks, I've heard about that. But we're talking about someone who wants to build now. First the European body has to make a ruling and then issue a directive & then the government here have to decide what way they will write it into the constitution and from there it will go on to the county councils. Maybe not exactly like that, but you get my drift, i.e. whats at European level now will take years to be put into law. But, thanks anyhow.