Tax and Overseas Parents

BigBlue70

My Dad, who has been resident and domiciled in the Isle of Man for 25 years, was lucky enough to inherit an acre of farmland in England from his father many years ago. The land, which had been held in trust, been farmed successfully until very recently when he received an offer from some developers.

He decided to sell the land (he has full ownership after the trust was dissolved) and wants to give some of the proceeds to myself and my sister, both of whom are based in England. I have power of attorney for my father and he his happy for me to receive the proceeds and distribute them on his behalf.

Does anyone on the forum know if any tax is likely to be payable on the proceeds? I.e. For my father as the land sale is in the U.K., or for my sister and myself receiving a gift from him?

Thanks for your thoughts :-)

Guest101

Land sale, possibly.


But no you don't pay tax on gifts

silvercar

Capital gains tax if the land has gained value since your father inherited it.