Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

New queries, issue 4455

10 June 2014
Issue: 4455 / Categories: Forum & Feedback

An annexation; All at sea; CA claims; Voluntary payment

An annexation

The tax consequences of a gift of a main residence annexe to the owners’ children.

We have some potential new clients. They are husband and wife pensioners and require advice on the tax implications of an imminent unusual property sale.

The clients owned a large end-of-terrace London property (well below 0.5 hectares) since 1984. They remortgaged the property in 1990 by £65 000 and used the funds to extend the adjoining garage into two ensuite bedrooms with additional downstairs living accommodation which served admirably with two growing boys and a regular accommodation for granny’s visits.

After the granny died in 2008 the couple obtained planning permission via the Land Registry to partition the “main” house and the annexe into two separate properties. All legal requirements and utility conversions were approved in 2009 with separate rates payable on the annexe in 2010 when...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon