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Sam, Accountant
Category: UK Tax
Satisfied Customers: 6465
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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HiYou answered a question back ein

Customer Question

HiYou answered a question for me back ein 2012: am in the process of taking this forward. Need to understand the most tax efficient way of doing so based on these facts:A few facts:• If the garden is sold now then it is worth about £75,000.
• If planning is granted then the plot of land would be worth around £800,000.
• If we were to build out the house then it would be worth c£2m. The costs for development around £700,000. This would mean a gain of £1.3mThe garden plot is about a third of overall garden.I need to know what is the best tax planning way of avoiding CGT on taking this project forward. The options I can think of are:1 – Sell the garden plot without planning permission to an offshore company (not in my name). So therefore the offshore company owns the plot, applies and is granted the planning permission. The company is worth £800k and can be transferred to an onward developer. There is a gain but the offshore vehicle is exempt from GCT at disposal.
2 – Same as above except build out the house. There is a gain but the offshore vehicle is exempt from GCT at disposal.
3 – Obtain planning permission in my personal name. The plot is worth £800k – what is CGT implication at disposal considering this is my PPR?
4 - Obtain planning permission in my personal name and build out the house. The profit is about £1.2m to £1.3m – what is CGT implication at disposal considering this is my PPR?Thanks J
Submitted: 6 months ago.
Category: UK Tax
Customer: replied 6 months ago.
I only want advice from Tax Vince.
Expert:  Sam replied 6 months ago.
HI Tax Vince has not been online for some weks/months - so would you like another expert to assist? ThanksSam
Customer: replied 6 months ago.
Hi Depends on whether you can provide advice on the question posed, including setting up any necessary paperwork subsequent to this discussion? Please read history and also the current position.I understand that if I was to sell land off from my home, then no CGT as PPR. But the main question is about how to structure for house build on top of plot avoiding tax to maximum.

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