Applying for planning with gifted land

[Fowlerj31]

Hi all,

 

I have been lucky enough to be gifted some of my grandparents land. She used to run a commercial business at the side of her house which is sat on a 4 acre plot. The tea room from the business is still there (brownfield land) although derelict and it has its own access private to my grandparents.

 

I have done some research and i believe it would be better in the respect of inheritance tax, should I have to pay it that the strip of land that she will gift me gets transferred ASAP before I start applying for planning permission (as this will increase the value of the gift should I have to pay inheritance tax on it) 

 

I am just wondering when I should get the planning consultant on board and how I would go about a self build mortgage, should I get planning approved, as I already have a bit of cash for a deposit and the equity (the land that has been gifted) unsure how this would work! 
 

Any advice appreciated!

[Russell griffiths]

You also need to look into capital gains tax for your grandparents 

talk to your accountant. 

[nod]

I would get the land valued as is 

Without any planning permission 

 

[Temp]

7 hours ago, Fowlerj31 said:

 

I have done some research and i believe it would be better in the respect of inheritance tax, should I have to pay it that the strip of land that she will gift me gets transferred ASAP before I start applying for planning permission (as this will increase the value of the gift should I have to pay inheritance tax on it) 

 

They may also have to pay CGT as it counts as a sale at market value.

 

4 hours ago, nod said:

I would get the land valued as is 

Without any planning permission 

 

 

+1 and tell the person valuing why you need a valuation. Estate Agents always value on the high side because they think you are more likely to use them to sell it. You want a value for CGT/IHT purposes which should be at the lower end of the market range. 

 

There are special rules for gifts of land that are different to gifts of money, cars etc. Best get some professional advice.

 

Some of the issues are raised here..

https://www.birketts.co.uk/insights/legal-updates/agricultural-brief-the-gift-of-giving-gifts-of

 

"The basic rule (since 1925) is that land can only be transferred, including by gift, by a deed, drafted as such, and signed by the giver (the donor), with a witness".

 

Continues,