Selling Part of Garden as a Building Plot

sinboots

Annie1960 wrote: »

This is correct. If the land is sold for development then CGT applies. The OP should speak to HMRC about this so they are clear about it before they sell. My understanding is that construction does not need to have been started, the land just needs to be ear-marked for development (such as gaining planning consent), but the rules change all the time.

The only people who can give a definitive answer on this are HMRC.

CGT position can be researched online and shows that the last people likely to give a definitive answer are HMRC... there is a landmark appeal decision (Commissioners) that illustrates the likelihood of local tax offices giving contradictory advice and making conflicting decisions. The advice above re garden size/proportions has been confirmed correct (by HMRC), should anyone need to look further into it.

Annie1960

sinboots wrote: »

CGT position can be researched online and shows that the last people likely to give a definitive answer are HMRC... there is a landmark appeal decision (Commissioners) that illustrates the likelihood of local tax offices giving contradictory advice and making conflicting decisions. The advice above re garden size/proportions has been confirmed correct (by HMRC), should anyone need to look further into it.

Size is not the only issues, which you will know if you have looked into it. If you have separated the land for development then CGT applies.

See HMRC Helpsheet 283 (at least this was the reference last year, it may have changed). It sets out the limits on private residence relief. The issue is that you may well have had a 'gain' by being granted planning consent. If you sell of the land/garden this may be liable to CGT.