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Sam
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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One acre of agricultural land in Kent is owned 70% by my

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One acre of agricultural land in Kent is owned 70% by my sister and 30% by my mother. They now wish to sell it. By mutual agreement the family wish that on receipt of sale income the beneficiaries will be 50% my sister and 50% me. Anticipated date of sale income is September 2020.Are there any financial benefit in my mother and sister legally transferring ownership to the new 50-50 structure now? I will not be paying any money to become a 50% ownerAnticipated value of land £275,000My mother is retired and my sister is in full time employment, as am I

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

Whether they sell and then distribute the funds has no tax consequence as the capital gain will arise either way - and also for Inheritance tax purposes the result will be the same as should either of them not live more than 7 years from gifting you a share - then its added back into their Inheritance tax position so to keep it simple just make the one transaction (or you have two sets of legal fees to pay to transfer the deeds)

link here https://www.gov.uk/inheritance-tax/gifts

Let me know if you need anything else -

Thanks

Sam

Customer: replied 6 months ago.
Thanks Sam, and just to be clear there is no advantage/disadvantage in terms of CGT, etc for me to take ownership of 50% of the land in this financial year rather than to never take ownership and be gifted £137,500 approx this coming September

Hi

None and in fact you would be worse off transferring now and then selling as then two sets of transfer legal fees and you also may have a capital gain when you sell (if increase in value between now and then) as will your mother and sister now by making the transfer and them again when they finally sell - its just making it also over complicated -

Thanks Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 6 months ago.
Many thanks Sam for the fast and effective advice

You are very welcome have a great day - Sam