I entered into an agreement with a landowner to obtain planning permission on a piece of agricultural land.the agreement was that if I obtained permission for 5 plots I could purchase one plot for the price of what it cost me to obtain the outline planning.
My costs were £25.000 but the plot of land is now worth £160,000.The plot of land will be used to build my main and only residence.
My accountant is telling me that I must pay income tax on the £160,000 and that the land owner should pay capital gains on the £160,000.
Could anyone advise me of my position
My costs were £25.000 but the plot of land is now worth £160,000.The plot of land will be used to build my main and only residence.
My accountant is telling me that I must pay income tax on the £160,000 and that the land owner should pay capital gains on the £160,000.
Could anyone advise me of my position