Hello, a gentleman died recently, and before he died, he added his partner (not married) to the title information on three small pockets of land where his caravan was used, so she became a joint owner. The land is part of a larger travellers plot of land part owned by other individuals and part owned by the council. The three (relatively small) plots were all used by the deceased, so I am wondering if the Revenue would be happy these were all residential, despite having three different titles? The distance was 20-30 metres away from each other. The alternative is that CGT may be due on the transfer (which was not paid, so either the conveyancer was not involved in this or it was decided it was not treated as an investment etc).
Any thoughts are welcome, because now the surviving joint owner is looking to transfer as well to her children before she dies, and does not want an unnecessary CGT issue!
If the caravan is on its wheels and not connected to electric, etc then it is likely to qualify as a tangible moveable asset and thus exempt from CGT on transfer on any gain arising. The land may give rise to a CGT charge. If it’s connected to electric etc then it may qualify as a private residence and any gain on transfer would not be chargeable to CGT (and neither probably would the gain on the surrounding land; acreage?).
Hello Malcolm, the caravan is fixed and full connected to electric and water etc. However, the home can not be moved and was specially built for the owner, who had mobility issues. Therefore, I see that the land it was sitting on could be claimed as part of his main residence like any home. However, the other two plots of land (c. 1/2 an acre perhaps in total), were physically separate, but very close by.
More facts required. Why are all three pockets of roughly equal value? Are all three pockets plots on which there is a right to install a caravan? How are/were the two pockets on which the caravan didn’t stand used? Caravans of the mobile home sort can qualify for PRR. Land separate from the plot on which the residence ‘stands’ can count as part of the garden and grounds. HMRC give the example of a house on one side of the road and the garden on the other. Distance is a key criterion.