Selling Site to avoid mortgage on renovations

S

segsoha

Registered User
Messages
5
My brother-in-law is planning on extending his home. Rather than take out a mortgage of 150k, he is planning on selling another plot of land (valued at 300k) to the builder that will be doing the renovations for 150k. Is this possible and any advice on Pros and Cons of going this route ?
 
Yes. But there are CGT, CAT ( Gift Tax) and Stamp Duty implications. Why not just sell the land for 300K, pay the CGT and Stamp Duty, these will arise anyway, pay or don't pay the whole 300K but the builder still has Income Tax issues with the 150K.

mf
 
You must log in or register to reply here.
Back
Top