I realise that I should seek proper financial advice however I thought I would run this one past you as someone may have had a similar experience.
6 years ago my Father died survived by my Mother. The will split their property 3 ways. 50% to my Mother and the other 50% equally between myself and my brother.
The property has a large garden half of which we have managed to renew outline planning permission which expires Nov 2011.
My mother has now decided she wishes to move somewhere more manageable.
The house is up for sale via an Estate Agent and the land up for auction in September.
The values are less then probate valuation.
It has just occurred to me that the house will presumably be subject to Capital Gains as far as myself and brother are concerned as it is not our principal residence an on the whole of the sale price.
My thoughts are that there is quite a bit of interest and an offer may be made on the whole lot prior to auction which will of course want to be in the purchasers favour.
My query is the land. Would that be a separate entity as regards CG?
What I am thinking is could there be some negotiation on prices with some an inflated price on the land balanced against a lower price on the house to reduce CG? In which case negotiations could reduce prices if large chunks could be avoided being given to the Taxman. Just a thought.
Last edited by: Fullchat on Fri 20 Aug 10 at 21:45
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Tax Question new
Tax Question new