Transfer of Land/property

wayneg_2

Hi,

I wonder if someone could help me, my brother and I in 2021 decided to purchase a plot of land but in my brothers name, the plot had planning permission for 2 properties, he was going to do a self build and I was going to a self build, we have now finished the properties and have roughly spent the same amout of money on each build.  It has now come to a time to split the land. I have already moved in to mine and my brother has recently moved into his.  I am now slightly concerned we are liable for CGT and stamp duty by not putting my name on the land when it was built.  Any help from this site would be brilliant. or would HMRC see it as I have made a significant investment from me and it is my sole residence after selling and moving in.  

Keep_pedalling

Taxation is based on beneficial ownership not legal ownership, so there should not be a CGT liability. You may however have to provide evidence that you are a beneficial owner if HMRC chance your brother for payment.

https://www.taxinsider.co.uk/legal-v-beneficial-ownership-a-taxing-distinction-ta

Keep_pedalling

Why did you actually do it this way? Hopefully it was not to avoid having to pay additional SDLT otherwise that might cause you s bit of a problem with HMRC now.

GDB2222

Keep_pedalling said:

Why did you actually do it this way? Hopefully it was not to avoid having to pay additional SDLT otherwise that might cause you s bit of a problem with HMRC now.

The higher rate of SDLT applies to residential property. It seems that the op and his brother bought a plot of land. Would the extra 3% have applied? 

wayneg_2

Keep_pedalling said:

Why did you actually do it this way? Hopefully it was not to avoid having to pay additional SDLT otherwise that might cause you s bit of a problem with HMRC now.

No it wasn't, it was just a trust thing, and propbably in hindsight not the wisest. I completely trusted my brother that when the time was to transfer the property he would do it.  The land was bought for 300k.  

wayneg_2

Keep_pedalling said:

Taxation is based on beneficial ownership not legal ownership, so there should not be a CGT liability. You may however have to provide evidence that you are a beneficial owner if HMRC chance your brother for payment.

What would evidence look like to HMRC? Thanks for the link it is very useful, we have contacted a solictor whom doesn't seem that she has completed this work before but she was saying she believed I needed someone to represent me as well. So looking for a conveyancer who would understand the predicament we are in.  We gained nothing from putting in his name, it was just a trust situation.

GDB2222

How was the £300k for the land raised? Did you each pay half? 

Keep_pedalling

wayneg_2 said:

Keep_pedalling said:

Taxation is based on beneficial ownership not legal ownership, so there should not be a CGT liability. You may however have to provide evidence that you are a beneficial owner if HMRC chance your brother for payment.

What would evidence look like to HMRC? Thanks for the link it is very useful, we have contacted a solictor whom doesn't seem that she has completed this work before but she was saying she believed I needed someone to represent me as well. So looking for a conveyancer who would understand the predicament we are in.  We gained nothing from putting in his name, it was just a trust situation.

I would have thought you just need to show that 50% of the money to purchase the land came from you. As this was originally a joint purchase I don’t see why you need two solicitors just one experienced conveyancing solicitor.