Gifting/selling part of garden to son

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uncleoswald

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Hi, I would like my son to gift a portion of my garden to allow him to build a house on the property. The garden is large enough hat it could have it's own entrance etc... My daughter who lives at home will inherit the main property.

What is the best way of going about this? And can the new property have it's own street number etc...?
 
Any use (it's not paywalled for me so hopefully same for others)?
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We want to gift our garden to our son to build a house. How do we go about it?

Property Clinic: Stamp duty, capital gains tax and gift tax liabilities should be considered
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Also...

Building house in parents garden & tax

Hi, My folks live on the outskirts of a small town & as a child i grew up playing in our massive garden to the side of my folks house. My dad is quite old, in poor health now & unable for the upkeep of garden. We have just received full planning permission to build a beautiful contemporary...
www.askaboutmoney.com
 
ClubMan said:
Is the original poster the man from Atlantis or something? ;)
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I had a vague recollection of reading an interesting thread many, many moons ago on this subject and the username was something similar. Obviously I got the name wrong :) You've set me a challenge now to see if I can find it :)
 
Thanks for that @RedOnion So the ol' memory that I give out about every day is not too bad after all considering that thread is back to 2005!!
I did better than Google :D:D
 
Thanks for all your help. I have found a lot of threads on the matter now that cover a lot of the issues but not others. It's all so overwhelming :oops:

Is it possible just to "gift" a portion of a garden? Or would they have to pay the estimated value?
 
uncleoswald said:
Is it possible just to "gift" a portion of a garden? Or would they have to pay the estimated value?
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You should be able to do this but you would presumably need a solicitor to deal with the "splitting" of the current site into two (your house and garden and the portion of the garden that you want to gift) and the conveyancing into your son's name. But presumably you would only want to do this if you were confident/sure that he was going to get planning permission to build on it etc.?
 
uncleoswald said:
Is it possible just to "gift" a portion of a garden?
Click to expand...
Yes, absolutely. But there's a bit of a 'catch 22'. For gift tax, its based on the value of the site on date of transfer. If you get planning permission first, the value has increased before you gift it, eating more into their lifetime tax free allowance.

What you need to be careful of is that you gift it to your child only. Not jointly to them and their partner, as they are stranger to you and it could trigger gift tax.

Child will pay stamp duty on full market value. Because its a site rather than house, it'll be 7%, but they can claim most of this back once they build.

On the overall planning side of it, arrange a call with an architect / engineer who's familiar with the area. It'll be money well spent before you make any mistakes. You're going to need an engineer to sign off the map splitting, etc anyhow.
 
I know nobody likes to hear worst case scenario stories but I heard of a couple who did precisely what’s being proposed here.

The son got married and the couple moved in. The marriage ended a couple of kids later and the daughter-in-law continued to live in the house, eventually with her new partner.

The son’s parents see them every day……
 
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