If i buy land off my gran for a slightly below normal price and she dies within 7 years will i have to pay inheritance tax or any other tax ? The land is valued at 5-7 thousand pounds per acre and is 3.5 acres. I am paying £12,000 and intend to develop the land into a small cul de sac with a re sale potential of in exess of £1000 000.
Could there be any sort of come back ? The land is not yet registered but i will do this on completion of conveyance.
Having looked on right move i would say her bungalow is worth about £250 000 tops. Cash wise she is pretty dam poor having little savings and a tiny state pension due to living most of her life out of the uk. She is married but my grandfather has emphysemia and i would say he only has about 3 years left himself. My grandmother drinks although she has been hospitalised (the last time for a couple of months, several years ago) and told not to drink so is a wild card. the bungalow will be split between my mother and my grandfathers two children from a previous marriage.
One more question sorry. Is there any sort of trust instrument such as a private common law trust (not a public trust or an off the shelf) that could negate capital gains tax ? I would be grantor/setlor and bennificary and apoint a trustee. You may be interested in a book i am reading. You have been very helpfull so far.
Good job well done.The link I sent you was for the wrong book the one I meant was this one.http://www.amazon.co.uk/Asset-Protection-Pure-Trust-Organizations/dp/1466399864I'm sure if you were in the right cabal then this would fly. Very interesting either way. I'm sure you don't want to talk or read shop that may not be completely factual when you already have a very hard earned bar card.