Selling land and home

stevemonty

I have recently attained planning permission for a new home on a portion of my rear garden which has separate access. As this land is part of my garden on my home (primary residency), I understand I may be exempt from Capital Gains Tax. In the new year, I'm also planning on moving home.  My question is will I need to sell my land with planning permission before selling my home to minimise CGT?  Right now I'm considering selling them as possible 3 parts:  job lot for both, or sold separately.  I'm just concerned if I sell the house before the land I may end up paying more tax but not sure if this is the case.

Jeremy535897

The case of Varty v Lines is relevant here (I am assuming that the total plot is all one piece of land and in total is no more than 0.5 Ha). See: https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64815 and
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64377 and
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64381

stevemonty

Thank you Jeremy and that's super helpful.... I'm going through and trying to make sense of the wording.  Yes it's less than 0.5Ha.  It seems from the wording of the above notes, that tax relief on the land is only available if it's sold before or at the time you sell your primary residency.

Jeremy535897

Yes. One thing you must not do is sell the house before the building plot.