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A mother and father (A and B) gifted my farming client (C) some land with development potential a few years ago. They have two non-farming children (D and E) so the gift has a clawback provision.
The transfer document TR1 states that A and B declare that they hold 50% of any future uplift on agricultural value on trust for D and E in the event that the land is sold for development.
It therefore appears that they are holding the potential uplift as bare trustees so D and E would account for 25% of the reserved value in computing their chargeable gains and this element would be excluded from C’s computation.
Do D and E have a base cost equal to their share of the land’s hope value existing at the date of the gift with the consequence that C’s base cost is restricted to...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
