Anyone know anything about planning permission in relation to tax?

[Twoddle]

A lady I bumped into today is planning to replace a house she's buying in the village I live in, with two new houses. I'm planning something similar with the property I'm already living in. She said something along the lines of it being better not to apply for planning permission before buying, for tax reasons - anyone know what she might have meant by this? I can understand that planning permission might add value to the cost of the property, but didn't know about the tax dimension ... unless it's a capital gains issue, and may affect the people she's buying from?

I would have to buy out my ex-partner in order to pursue the idea I have for where I live. Is the timing of my applying for planning permission significant? (He has said I can buy out his share at its current value, irrespective of whether or not it has planning permission by that time.)

Sorry if not making much sense!

Thanks.

Might be to do with stamp duty if the value increases??

Not a planning expert, but anyone can apply for planning permission on a property even if they don't own it.

Stamp Duty Land Tax is payable on the market value of a property, not the value it is sold for (to stop people transferring for a minimal sum and ducking paying more SDLT). Planning permission obtained prior to buying land which enhances the value of a plot of land would therefore increase the amount (and possibly the rate) of SDLT you would pay at purchase. So, she is probably right.

So, you might want to buy out your ex-partner now before applying for planning permission in case he changes his mind after seeing how much value your planning permission adds.

There may be a CGT liability, but I don't know enough about it.