- Sensiblegreeny wrote:
- That's not strictly true Grovehill is my understanding. If you owned 2 houses and wanted to "sell" one of them to your son for example you have a willing seller and a willing buyer. However if you agreed between you that the value was £1 then HMRC would have something to say on Capital Gains Tax grounds irrespective of the "willing" amount the willing parties agreed. You cannot undersell something for less value than it is perceived to be worth because if you do they will assume a valuation of their own and tax you on it anyway. I assume the same would apply to land.
Was the land valued as bare land or development land, I ask myself. Land without Planning consent is worth a fraction of that with.
Of course, Accountants can always think up ways to evade, sorry, avoid tax liabilities.
For instance, paying for the neighbour to have his property improved if he doesn't block your planning consent might kill two birds with one stone.
That's why Tesco always pay for road improvements near their sites.