This my first time posting and its going to be long winded so please bare with me.
My parents own their own home with a small piece of land attached. A developer who was building a huge estate behind them needed the land as an exit from the estate to the main road. So my parents swopped the land for four houses in the estate.
The developer has since approached them to buy out their own home as he wants to develop more flats, supermarket etc etc. Initially they were reluctant but they are now surrounded by flats etc on all sides and decided to leave. So after playing hard ball for many months they secured a cash settlement of 700K for a house that isn't worth half that.
I own my own house and will be selling it shortly to move into one of the four that my parents secured in the first transaction with the developer. My parents will accept no money for this house and i will make approximately 100K from the sale of my own house. New house will be worth approx 250-290K. We are unsure of value as they have not been put on the market yet.
My two brothers will also recieve new houses in the estate but they don't currently own any property.
So my questions is what are the tax implications for all of us?
Gift tax / Capital gains etc etc.
Dad wants to wait until he has a written (unsigned) contract before he visits the accountant but I would like a heads-up on potential pit falls and questions to ask before we make the appointment.
Thanks for taking the time to read through the post and all replies are greatfully received.
My parents own their own home with a small piece of land attached. A developer who was building a huge estate behind them needed the land as an exit from the estate to the main road. So my parents swopped the land for four houses in the estate.
The developer has since approached them to buy out their own home as he wants to develop more flats, supermarket etc etc. Initially they were reluctant but they are now surrounded by flats etc on all sides and decided to leave. So after playing hard ball for many months they secured a cash settlement of 700K for a house that isn't worth half that.
I own my own house and will be selling it shortly to move into one of the four that my parents secured in the first transaction with the developer. My parents will accept no money for this house and i will make approximately 100K from the sale of my own house. New house will be worth approx 250-290K. We are unsure of value as they have not been put on the market yet.
My two brothers will also recieve new houses in the estate but they don't currently own any property.
So my questions is what are the tax implications for all of us?
Gift tax / Capital gains etc etc.
Dad wants to wait until he has a written (unsigned) contract before he visits the accountant but I would like a heads-up on potential pit falls and questions to ask before we make the appointment.
Thanks for taking the time to read through the post and all replies are greatfully received.