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Capital Gains Tax Advice on selling land
KarateKing
Posts: 2 Newbie
in Cutting tax
Hi
New to the forum and hoping somebody will be able to help me understand the CGT implications.
I received a half share in a parcel of agricultural land (approx 10 acres) this was gifted to me from my mum's will.
The other share is owned by my sister
At the time of the gift the land was agricultural and we estimate due to location the 10 acres was worth approx £100,000
The land has recently been sold to a developer for £5.6 million.
It was not a straight forward transaction and hence we used the expertise of a land promoter and they will earn 20% from the purchase price.
How do I calculate the CGT that I will be subject to?
New to the forum and hoping somebody will be able to help me understand the CGT implications.
I received a half share in a parcel of agricultural land (approx 10 acres) this was gifted to me from my mum's will.
The other share is owned by my sister
At the time of the gift the land was agricultural and we estimate due to location the 10 acres was worth approx £100,000
The land has recently been sold to a developer for £5.6 million.
It was not a straight forward transaction and hence we used the expertise of a land promoter and they will earn 20% from the purchase price.
How do I calculate the CGT that I will be subject to?
0
Comments
-
With the amount at stake you should get professional advice. But it sounds like it is to late as the transaction as already occurred.
By the sounds of it you will pay 20% CGT on the gain which will be £5.6m - probate value of £100k - the promoter's fees of £1.12m = a gain of £4,380,000 of which CGT at 20% = £876,000
You will receive an annual exemption but it is fairly immaterial in these circumstances.
Seek professional advice!0 -
Many thanks, and yes I will be seeking professional advice0
This discussion has been closed.
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