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Ask JGM Your Own Question
JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11554
Experience:  30 years as a practising solicitor.
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Presently I am looking to purchase a plot of land

Customer Question

- DOESNT NEED TO BE SCOTS LAW...........Presently I am looking to purchase a plot of land in Scotland with the intention of building a house there to ultimately sell on. When it comes to the selling the house my obvious aim will be to maximise any potential profits / gains there and my question is twofold: Being a family of four with two married adults and two children under the age of 16 years would it be advisable to put any such plot purchase into the names of all four family members to minimise any capital gains tax if sold straight away? Secondly, how long would I have to have the house as my main residence and living there for it to be exempt from Capital Gains Tax - irrespective of who evers names were on the title deeds?

Submitted: 4 years ago.
Category: Scots Law
Expert:  JGM replied 4 years ago.
Thank you for your question.

The answer to the first part of your question is that you should buy the plot in the joint names of you and your spouse to minimise CGT. You children can't own property until they are over 18. If you come to sell when they are over 18 you can transfer the title to four names immediately before the sale. You don't even have to record the title in the Registers of Scotland at that time, you can simply execute the deed and pass it on to the buyers at settlement.

Secondly there is no particular period of time you would have to have the house as your main residence. You can nominate the house to be your main residence from day 1 and get the benefit of the tax relief.

I hope this helps. Please leave a positive response so that I am credited for my time.