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CGT sale of land
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steve_smith335
Posts: 1 Newbie
in Cutting tax
Hi,
First time poster, not sure if this is in the correct section?
I have owned a house since 2001, its the only property I own. It has been let to tenants for the past four year and I have lived with my partner. I would now like to sell a small part of the garden area, (0.3 acre) what would be the correct calculation please for my CGT liability?
Thank you
Steve
First time poster, not sure if this is in the correct section?
I have owned a house since 2001, its the only property I own. It has been let to tenants for the past four year and I have lived with my partner. I would now like to sell a small part of the garden area, (0.3 acre) what would be the correct calculation please for my CGT liability?
Thank you
Steve
0
Comments
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by implication (?) you have NEVER lived there as your MAIN home so you do not get any private residence relief
in that case the sale of land is subject to basic CGT: what you sell it for, minus what 0.3 acre of garden land associated with a dwelling cost you to buy, minus your CGT allowance = taxable gain
tax payable at 18% and/or 28% depending on your financial circumstances in the tax year of sale
upshot? you may need a professional valuer to help with it...0 -
by implication (?) you have NEVER lived there as your MAIN home so you do not get any private residence relief
in that case the sale of land is subject to basic CGT: what you sell it for, minus what 0.3 acre of garden land associated with a dwelling cost you to buy, minus your CGT allowance = taxable gain
tax payable at 18% and/or 28% depending on your financial circumstances in the tax year of sale
upshot? you may need a professional valuer to help with it...
Thanks for the reply. Yes, I didn’t make it clear, I lived in the property up until 2015.0 -
If the plot your house sits on is over 1.2 acres then you may not get any relief.
https://www.taxation.co.uk/articles/2017-11-28-337311-main-residence-relief-and-gardens0 -
Keep_pedalling wrote: »If the plot your house sits on is over 1.2 acres then you may not get any relief.
https://www.taxation.co.uk/articles/2017-11-28-337311-main-residence-relief-and-gardens
It’s just under an acre0 -
You'll get some PPR relief (principal private residence relief) and some letting relief (if you sell before 6th April 2020).
The calculations are quite complex0
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