CGT and Development Land

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CharlieC

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My relatives are planning on selling their house+1acre garden to a builder without any planning permission.
It is likely that he will develop the land

As they have lived in the house on and off over the years they will have a CGT liability

It is hard to value the house exactly as it is in a small village and there are no similar houses to really compare to but,
I don't feel it is priced at a developer premimum,
They haven't had it valued as yet

Would it be enough to get written valuations from some auctioneers at
1)Selling as a private house
2)Selling with development potential

Hope this makes sense
 
Assuming they do proceed to sell, then they should definitely get proper formal tax advice from a tax advisor or accountant. They will be able to explain how CGT will be addressed and how best to protect their own interests in terms of minimising liabilities.
 
ubiquitous said:
Assuming they do proceed to sell, then they should definitely get proper formal tax advice from a tax advisor or accountant. They will be able to explain how CGT will be addressed and how best to protect their own interests in terms of minimising liabilities.
Click to expand...

I appreciate your response, they have tried consultations with a solicitor and recently a Tax Specialist

The Tax specialist (who was a referral) oral calculations come in at around 18% of sale price
No Allowances for purchase price, CGT allowances, expenditure etc
He advises that they could end up in a tribunal if Revenue queried it!!
He is sending out a formal response in writing next week

Does anyone know if an Estate Agent valuation with/without development potential would be sufficient.

I am just trying to arm them with enough knowledge before meeting a new Tax specialist
 
The general advice would be to get your valuations after you get your professional advice. Your advisor should be able to specify what they need to have included in the valuations. If you get valuations beforehand there is a high chance that you will need to have them re-done later on.

By the way, if you don't mind me saying so, the "advice" you received from this "tax specialist" seems to be an absolute joke. If the "tax specialist" is a practising, accredited accountant or tax consultant, you should consider reporting them to their Institute. If not, then you should only accept advice from a practising & accredited advisor. The scale of potential CGT liability in this scenario is much too large to warrant amateur "advice".
 
Thanks for the input on valuations
Waiting on written feedback and am looking for another Tax advisor
 
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