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I've bought a plot of land with planning permission for a single house. It used to have a bungalow on the site, but that was demolished a few years ago. As part of the planning application, they did soil surveys and found signs of lead contamination, requiring large amounts of the soil to be replaced and barriers installed. In the report from the specialist company, there's a mention of "land reclamation relief", stating that up to 150% of the cost of remediation works might be reclaimable through this scheme (in an effort to encourage the use of brownfield sites). But I've looked into it, and it seems to be relief from UK corporation tax, so only claimable if you pay that (which I, as a mere self-builder, don't). And it has to be claimed by the owner of the land - so it's not something the decontamination contractors would be able to claim and pass on the savings to me. (I guess there would be loads of companies offering this service for free if that were the case!) Is my understanding correct, or is there a way that self-builders can benefit from this relief?

Hello all, I am just starting my journey to a self build. I have been lucky enough to be gifted some land to build on. I am doing a lot of reading up to learn as much as I can before we start the whole journey. I am going to speak to a solicitor aswell, but just wanted to get as much advice as possible from you. A few questions I have are; 1) to mortgage against the new build does the land have to be changed on the land registry first? 2) is there any tax I will be liable for? We will be living in the main property throughout the build and are planning to live in the property when built. 3) is there anyway to be in contact with the council reference planning prior to the application? 4) Has anyone got any advice from there experience that they can pass on. Thank you for any help and advice you offer.

Very much a newbie, so please go easy on me! I currently own the ground floor flat of an end of terrace property in London. The upstairs flat is owned by a friend of mine. Together we own the freehold on the land. We are about to undertake a personal development project, to extend the terrace and build 2 new 2 bed properties on our existing land. We will then either rent these properties out or sell them for profit - whilst continuing to hold on to our existing properties. From a tax and finance perspective, I have a few questions; - Would setting up a LTD company be beneficial? - If so, if we were to be VAT registered, I understand we could claim back any VAT for architecture and professional services fees? - Though if we were to do so, would we be obliged to charging VAT if we sold the property to an individual? - Does anyone have any recommendations on the best way to reduce CIL, VAT, CGT? Many thanks, Ant

I'm looking to purchase a "mixed-use" property for the later conversion into a BTL house. Currently it's an unused village shop with residential accommodation to the rear and upstairs. A lot of guidance I can find online references "upstairs flats" but in this case the building is really all one unit - with a door separating the shop space from the residential space. There's a few facts of the property that make me think it could be appraised for SDLT under the commercial rates, however the guidance is particularly vague in my opinion - and I'd like to hear some anecdotal comparisons if any of you have any! it is zoned as mixed-use with the council, it has no active planning permission to be anything other than mixed use, it hasn't been used at all for some years (~3) and is slowly falling into disrepair, its water connection was disabled at time of inspection, it needs a full rewire -- and also has never had a gas connection, it is generally not in a great condition so would be difficult to use as a family dwelling, it hasn't been inhabited as a part dwellinghouse for well over 15 years - since then it was just used as a shop + store rooms However in the Finance Act (section 116) it states residential rates will apply if it is "...suitable for use as a dwelling..." -- which is where the contention is. It's water tight and presumably the water could be reinstated. Let me have your thoughts! Aaron

Trying to finalise my budgets and cash flow for my new build and not clear on VAT. I have read as much as I can and mostly clear on what can and can't be claimed. However not clear how the process work with a contractor. For example these are my thoughts but feel free to correct. Builder 1 is not registered for VAT if he purchases bricks etc. he pays inclusive of VAT, as he isn't VAT registered he cant claim the VAT. The alternative is for me to pay directly for the materials then claim back VAT, otherwise I pay the VAT to the builder and loose it. Builder 2 is registered for VAT if he purchases bricks etc. he pays the VAT then claims it back himself or can ask me to pay directly and claim back myself. Ideally I want to pay out as little VAT as possible during the build then have to claim from HMRC but maybe there is no choice . Maybe I am missing something obvious. Any help appreciated. - thanks.

I have a main contractor who I'm planning to use to manage my build. He's suggested to me that is easier for him if I pay the guys that will work on the job directly rather than paying him and him passing it on. The reason given is that it takes him over the VAT threshold. Can anyone comment on this kind of set up? I don't think there's any specific reason why this might be a problem. He would manage the guys on site on a day to day basis, though clearly I would be responsible for ensuring that they were paid correctly and the appropriate tax paid etc. And if I get it wrong, I'm on the hook. Can anyone suggest whether this is ok and where I can get more information about my liabilities and responsibilities?

When I was in the supermarket this morning I saw a headline about LVT and decided to start looking into it. This seems to be an increasingly popular suggestion from some people and is particularly gaining traction in Scotland. There are positives, it might encourage development and would be hard to avoid, but reading between the lines the proponents to me seem to really be pushing for a wealth tax and an almost communist policy designed to make land worthless. We do need encouragement for houses to be built and this would bring land values down gradually over time which is a much more sensible way of doing things than an overnight shock which would have all kinds of consequences, clearly billions of pounds have been loaned against current land values. I am not convinced a LVT would help building. It seems to me that the main impediment against building is that local politicians are scared of voting in favour of building. Hence planning committee decisions are often over ridden by central government. Often they have no basis under planning rules. Changing the planning process would be the best way to improve housing supply. It should not be politically affected. There is a notion that a LVT helps to stop tax avoiding. To be honest I don't know how much tax avoidance goes on. Certainly as far as I see I earn money, it gets reported and I pay tax. In general tax avoidance seems to be more involved with self employment rather than high earnings. I have a friend who is a self employed IT contractor who paid himself via employee benefit trusts and paid no income tax at all for a few years until it was cracked down on. I am also a believer that incomes should be taxed less and assets more to encourage work which adds value. But I don't see the proponents of the LVT suggesting a flat income tax at the same time. CGT is much less than Income tax which I believe is odd. A LVT in conjunction with lower income tax might make sense as it would improve tax compliance. Considering that this tax seems to just be proposed in isolation it appears to me at least that it is politically motivated.

Hi All, I’m currently looking to have some land (garden) gifted to me by my father from his current primary residence. I’ve been advised there are some tax considerations especially as i’m deciding whether to complete the transfer of land before or after I obtain planning permission for it. I am looking to get professional tax advice but wanted to get opinions before-hand. The three taxes i’m aware of are: Capital Gains Tax – I imagine this applies because the land is no longer part of the primary residence once it is split and gifted. However my father is retired, so I’m not sure what % bracket for CGT he will fall in. Inheritance Tax – Shouldn’t apply to me if my father survives more than seven years after the gift Stamp Duty – shouldn’t apply to me as house is free from mortgage Questions: Would my father have to pay CGT based on the information above? If we eligible for gift relief and I want to sell the new-build property, will I pay CGT even if it has then become my primary residence? The CGT on the gain (once I build a house) will be enormous as the land with a property on it will value considerably more. If I transfer the land pre-planning (lower value = less CGT), then find out I can’t get planning permission and want to transfer the land back, are there any tax implications to me/father? The land in theory goes back into his primary residence. How does HMRC view ‘value’ of land and the gain? i.e. originally my father paid 80k for the whole property but the gifted land is only the garden portion of the property and may be worth around the 50-90k now on its own. HMRC requires valuation from a professional surveyor only? When dealing with the splitting and transfer of land, should a solicitor deal with HMRC for tax? Or will this need to be a separate process my father and I will need to do ourselves? Many thanks for any help you provide!