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CGT implications for a self build?
crawf1982
Posts: 14 Forumite
in Cutting tax
Hi,
in the future I plan to build my own house.
The process obviously involves 2 stages: buying a plot of land and building the house on it.
From the research I've done into CGT it appears that self builders get a 12 month period (extendable to 2 years in some circumstances) in which to declare their new house as their primary residence (and therefore not be liable for CGT on it if they sell it later).
My question is: does that period start from the day you purchase the land?
For example: If I bought the land, but did not start the build stage for a couple of years after that, would I then have to pay CGT when I eventually sold the house even if it had been my primary residence since the end of the build stage? If so, at that point would the CGT be based on the total value of the estate, not just the land?
Thanks in advance for any input,
Dave
in the future I plan to build my own house.
The process obviously involves 2 stages: buying a plot of land and building the house on it.
From the research I've done into CGT it appears that self builders get a 12 month period (extendable to 2 years in some circumstances) in which to declare their new house as their primary residence (and therefore not be liable for CGT on it if they sell it later).
My question is: does that period start from the day you purchase the land?
For example: If I bought the land, but did not start the build stage for a couple of years after that, would I then have to pay CGT when I eventually sold the house even if it had been my primary residence since the end of the build stage? If so, at that point would the CGT be based on the total value of the estate, not just the land?
Thanks in advance for any input,
Dave
0
Comments
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I thought it was 12 months from the time you complete it0
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Sorry, I misread. I was thinking about VAT reclaim0
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