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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a plot of land which was valued at inheritance 2 yrs

Customer Question

I have a plot of land which was valued at inheritance 2 yrs ago at £180k, after development I am looking at a profit of 1M. To limit my tax liability I have formed a ltd company.
Q1. Can I transfer the land from my ownership to the company without any money changing hands?
Q2. If I used the 2014 valuation would the company now owe me £180k?
Q3. I believe that in the present climate the value of the land is nearer £125k, would I be better off using this figure and would I have to have this valuation verified by a surveyor?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Two points; do you own a sole or main domestic residence elsewhere and how big is the total plot involved?

You can transfer the land as you suggest. Any gain made on the current market value on transfer can be entitled to Rollover Relief, but that merely postpones the Capital Gains Tax (CGT) liability, if any, to the ultimate disposal of the shares.