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Looking for some legal advice and know there are a few legal minds on here. I will be taking full legal assistance eventually but need to get quick advice on a couple of queries.
I am a trustee of a charitable development trust for our village. We don't have a village hall and have been trying to address this for some years. We have been approached by a private organisation in the village who own an old church building with a view to them 'gifting' it to the village. They no longer have the upkeep, we get a village hall and they get use (10 meetings a yr) for free, everybody wins. Should add that this is in Scotland.
I have been looking for precedents online but not found much except to raise a couple of questions :
1. If the property is transferred for, say, a nominal sum would the transfer be liable for any taxation (capital gains tax?) for either party?
2. Similarly would we have to pay the Land Registry/Stamp Duty on the full valuation of the property?
I would appreciate any advice. TIA.
Might have been quicker to google it than post the query?
[url= https://www.revenue.scot/land-buildings-transaction-tax/guidance/lbtt-legislation-guidance/exemptions-reliefs/lbtt3010/lbtt3035 ]Charities LBTT[/url]
If you are a charity, you can get exemption - I don't think the gifting bit makes a difference to the taxable value though.
so:
1. yes, LBTT based on market value, but
2. no, you're a charity
Whoever deals with the conveyancing should be able to advise further (and if they can't get a different one).
You may also, under OSCR rules, need to treat this as a restricted donation. How that works with land/buildings, I don't know.
The 10 meetings per year means that there are strings attached, which makes things more difficult (tax relief and annual accounting for starters).
There is a benefit threshold (10% maybe?) so as long as you document that the total benefit to the group is less than the permitted value based on the size of gift then should be OK I think.
The rules are there to stop tax fraud (make gift to charity, claim tax relief, get gift back by some means other than cash).
I suggest you instruct a solicitor and sort this out properly.