Capital gains tax.

patmelia

A few years ago we purchased a piece of land next to our house. We have only ever used it as a garden but have kept the deeds separate so that if we wanted to sell it at a later date we could. That day has now come and we are looking to sell up.
Looking into CGT it seems that if you sell off some of your garden, you can avoid the tax. Does anyone know if that would apply in our case? We can prove that it's always been used as a garden.
We think the issue could be that it is on a seperate deed to our house.
Many thanks.
Pat

Keep_pedalling

There would be no tax to pay if you are selling part of your primary residence, but in this case the plot of land has never been part of that so I think it likely that it would be subject to CGT.

What sort of gain are we talking about?

patmelia

Thanks for your rely, we really expected to hear that we would have to pay.
The gain is substantial, potentially. If the valuations that we have had are correct we are looking at it being worth 6-8 times what we payed for it.
We didn't ever buy it to make money so the gain is huge, even if we do have to pay CGT. However, we are a fairly large family who have outgrown our house, so need to make as much as possible in order to afford a bigger house.
We have thought about adding it to our house deeds, and then taking it off again, I'm assuming that there would be some kind of time control on that.

Keep_pedalling

I would take some professional advice. The fact that you have always used this land as a garden may give you exemption.

http://www.wrightvigar.co.uk/tax-implications-sale-garden/

patmelia

Thank you for the link, we are going to seek independent advice.