Am i Liable for tax if i sell some of my garden

collectors

Hi, i am lucky enough to have a house that sits on about an acre of land & wondered if i sold 1/2 of the lands to a neighbor would be eligible for a tax of any kind?
From my house, I also rent 3 rooms to lodgers as a live-in landlord & realize at a later date i might be eligible for CG tax & wasn't sure if this would come into force. Thanks

greatcrested

SDLT and CGT.

As an aside, is this a HMO and does it require an HMO licence....?

Mickey666

Isn’t SDLT liability paid by the buyer rather than the seller?

RAS

When we sold part of the garden it was not subject to CGT because we did that before selling the house. If we'd sold the garden after selling the house we would have needed to pay CGT. It may have changed but talk to a specialist.

Davesnave

We sold part of our garden after we sold the house, but if I recall correctly, because there was an allowance of £10600 each, we paid no CGT on the £20k received.

collectors

greatcrested said:

SDLT and CGT.

As an aside, is this a HMO and does it require an HMO licence....?

It's the home that I live in & doesn't fall into the HMO category. I checked & the council sent me a letter that i don't fall under the HMO because there is only 4 at any one time living here "including me" & its a bungalow, so only one floor.

collectors

Mickey666 said:

Isn’t SDLT liability paid by the buyer rather than the seller?

Yes, correct. Sorry i dint get back sooner, i am not getting emails to say there was a reply. ????

greatcrested

Mickey666 said:

Isn’t SDLT liability paid by the buyer rather than the seller?

Sorry - yes!

Grumpy_chap

Clear different opinions, so need professional advice.

My view is that as the garden is part of your primary residence, no CGT on selling the garden.

SDLT is paid by the buyer, may be below the threshold.  If it is an extension to their primary residence, then I don't think they are subject to second property surcharge.