CGT (site purchased from Aunt)

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GJPC

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Can anyone advise?

I purchased a site three years ago from my aunt. The site was purchased for 40k less then the market value. I agreed to pay the capital gains. The market value was 70K. Three years have gone by and this has not been paid. Solicitor A advises me to pay and solicitor B advises not too pay. Both solicitors work for the same company. Solicitor B said seeing that no contact was made since date of purchase why pay - he advised to invest the money and leave it to one side.

Can anyone offer some advice please?
 
Yes - I bought the site three years ago but no-one has looked for the cgt. Thanks Ned.
 
GJPC said:
Yes - I bought the site three years ago but no-one has looked for the cgt. Thanks Ned.
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It's self assessment so you have to declare and pay it yourself.

I assume from your original post (and your other thread) that it's actually your Aunts CGT liability that you agreed to pay, if so then you're currently leaving her open to prosecution. If not then what are CGT are you referring to since CGT will only liable to you once you sell the place?
 
If the site has been transferred into your name this has triggered a CGT liability for the vendor. The tax is due and payable with effect from the date of the conveyance of the land iif no official contract was signed. Further there are stamp duty implications involved.

Also as youi are intending on paying the CGT, there may be gift tax implications
 
But the liability is your Aunts. So its up to her to deal with it. But you said that you would pay it but you have'nt. So its back to you. Revenue will not come looking for it - the Aunt has to file her return and make the payment - even if you are funding it. And as the CGT was due three (?) years ago, you ( your Aunt) will be lucky not to get hit with interest and penalties.

Of course you could take the view that, Arra who's ever gonna know, so why do anything? But thats a whole other area.

mf
 
WOuldn't chance it to be honest especially ojn the transfer of land which is to become a home. Can lead to ownership issues later
 
Thanks again everyone - you're views are very helpful. Howitzer - Yes you're right I need to sort this for everyone's sake. Ned - No I'm not liable for gift tax. Whatever way it worked out I didnt have to pay. Mf1 - Lets hope the penalties will be low, its bad enough having to pay this amount of cgt. I could go the arra who's gonna know but I'm afraid they'll haunt me at some point..

Thanks again to everyone!
 
The gift tax implications I mentioned relate to your aunt. Remember you are paying her tax liability. effectively gifting her cash.
 
GJPC,

Your aunt's CGT bill will by now have increased to include a 10% late filing surcharge. If Revenue end up pursuing her for the liability before she makes a self-assessment return, she could be facing 1% per month in interest charges added to a risk of prosecution. If you agreed to pay the CGT as a quid-pro-quo for paying less than market value for the site, then you could find yourself in a difficult position with your relatives if you don't honour your side of the deal.

Ned_ie said:
The gift tax implications I mentioned relate to your aunt. Remember you are paying her tax liability. effectively gifting her cash.
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This isn't correct. There is no evidence of any gift being received by the aunt here - merely a property changing hands for an agreed sum on condition that an associated liability is paid.
 
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