lots of problems!

DVardysShadow

nexus7 wrote: »

I'm not familiar with splitting up land, however thinking about it, I don't think it'd hurt if you got planning permission in advance of officially "splitting" the current plot in two as long as you follow the previous example and "gift" the land.

NO!!!

This deal is vulnerable to 2 types of taxation. Inheritance tax and Capital gains.

If they don't catch you with one they may catch you with the other.

Now the problem with Inheritance tax is that if the giver dies within 7 years, the gift may be taxable. So you need the gift to be as small as possible. This means not getting Planning permission.

But if the gift is valued low, then planning permission will ensure a good gain liable to Capital Gains tax. This can be avoided as explained by using the house as main residence.