Duplex ownership and selling structure

Looking for some direction, we are in the process of developing our PPOR into a duplex with the intention to keep one for ourselves to live in. We have been approached by our parents to sell the other side as they want to downsize, however would like to structure things in a way which is the most sensible for all parties in terms of all taxes payable.
A couple of questions I am unsure and seek opinion on or a reference for someone who can give me the required advice(I have every intention of engaging an accountant and property solicitor)

1. Am I able to sub divide land prior to commencing and selling half to parents - therefore minimising stamp duty for them and each party pays for there own build? What could be the downfalls of this?

2. If we sold half of the property to my parents now and funded the build with each party keeping one side each is this a trigger for CGT ? What can we do to still take advantage of it being our ppor?

Looking for a smart structure to implement
Basically want to take advantage of the situation we have . My parents want to sell there house to take advantage of the market and pay us market price for the new duplex when complete but don’t want to give away money on taxes if we don’t have to.
If there is another thread which captures this could someone point me in the right direction. Thanks in advance

 

1. This is a planning question - it is possible in some instances to subdivide before construction. But there could be CGT consequences

2. Any transfer of land will be a CGT event. If you do it while there is a main residence on there it could be CGT exempt though, if you demolish and then do it you could be up for a lot of CGT - but might save some stamp duty

seek your own legal advice.

 

thanks terry, are you able to provide this paid advice or recommend someone who I can speak to.

 

I am only giving legal and tax advice to our loan clients now. You could get the CGT advice from an accountant - but not the stamp duty advice, would need a lawyer for that.

 

There is a little known duplex strategy you can use that might mean NO CGT is payable. It requires specific issues to be addressed in the build so the main residence exemption can be used before the other half is sold to the parents. It doesnt mean 100% exemption but the portion you keep would have a period of time when it is subject to tax and if you stay there indefinately it may never be triggered...and with the right knowledge could even become zero. This strategy is only suitable when the other party is related. Duty is inevitable for a purchaser.

 

Thanks paul,
Would you be ok if I reached out to seek further paid advice?