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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5980
Experience:  FCCA FCMA CGMA ACIS
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Are there any tax liabilities to remove names from a land

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Hello, are there any tax liabilities to remove names from a land title deed if no money is transferred?
Assistant: What steps have been taken so far? Has any paperwork been prepared or filed?
Customer: nothing has been done so far
Assistant: Where is the land located?
Customer: in Devon
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: there are currently 4 names on the deeds and 3 wish to be removed

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

Is this your sole or main domestic residence?

Customer: replied 6 days ago.
it's not a residence, just a plot of land

There may be a Capital Gains Tax (CGT) liability for the individuals removed from the deeds based on the acquisition price and the current market value.

Customer: replied 5 days ago.
how do I determine if the liability is there if no money is to change hands?

The Valuation Office Agency (VOA), a little-known part of HMRC's empire staffed by Chartered Surveyors, will be called in. Their main task is to determind banding for Council Tax and also business rates assessments. The Agency is advised of all transactions in land and thus has a very comprehensive data bank of property values.

Customer: replied 5 days ago.
it sounds like even though there is no financial gain for the individuals there still could be CGT liabilities on the value of the land

Unfortunately, yes. However, each individual has a non-cumulative Annual Exempt Amount (AEA), currently 11.7K, to offset the gain.

bigduckontax and 2 other Tax Specialists are ready to help you
Customer: replied 5 days ago.
well thank you for your advice, it is very much appreciated and has answered my questions.

Delighted to have been of assistance.

Thank you for your excellent support.