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Tack shop

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24 May 2011
Issue: 4305 / Categories: Forum & Feedback , Capital Gains , Inheritance Tax
A brother and sister own a tack shop standing on a green belt property, but the business is carried on by the sister and her daughter. The brother wishes to gift his share of the property to his sister, but there is concern as to the capital gains tax consequences of ‘hope’ value

My client owns jointly with her brother a piece of green belt land on which stands an equestrian ‘tack’ shop run by my client and her daughter.

The shop is very dilapidated and requires rebuilding and they have been told that planning permission should be granted for this because there is no material change of use.

Once rebuilt the tack shop business will continue to trade from it.

The accountant acting for the brother has suggested that if he passes this land to her at the value recently placed on it by the land agent (reputable) and before the shop is rebuilt HMRC will seek ‘hope’ value in case permission should ever be given for a house to be built on the plot of land which will then be empty.

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