CGT selling land with Full PP

Starryeyes20

Hi , please can anyone advise the CGT implications if we sold a plot of our land with Full PP for a residential dwelling which is currently in the cartilage of our primary dwelling  . Thankyou in anticipation of your response  😊

Hoenir

The land will need to be transferred into a seperate title prior to the sale. You'll need a land agent to determine the base cost for CGT purposes. 

eddddy

If the plot is part of the garden of your primary residence, it's likely to be exempt from CGT because of Primary Residence Relief.

But there are a number of caveats, including...

• The overall garden must be smaller that 1.2 acres

• You must have used that part of the land as part of your garden

• You mustn't fence off or separate off the part of the garden before the sale. You must make sure you continue to use it as a garden right up to the sale date 

• You must not have bought the house with the intention of selling part of the garden (although that might make any profit liable to income tax rather than CGT.)

Google will find lots of sites that discuss this. Here's just one example:
https://www.krestonreeves.com/news/selling-part-of-your-garden-for-development-could-be-a-shrewd-move/



Edit to add...

Hoenir said:

The land will need to be transferred into a seperate title prior to the sale.

Why do you say that? I think that could cause extra unnecessary problems.

For example, the land would no longer be part of the OP's Primary Residence.

user1977

eddddy said:

If the plot is part of the garden of your primary residence, it's likely to be exempt from CGT because of Primary Residence Relief.

But there are a number of caveats, including...

• The overall garden must be smaller that 1.2 acres

• You must have used that part of the land as part of your garden

• You mustn't fence off or separate off the part of the garden before the sale. You must make sure you continue to use it as a garden right up to the sale date 

• You must not have bought the house with the intention of selling part of the garden (although that might make any profit liable to income tax rather than CGT.)

Google will find lots of sites that discuss this. Here's just one example:
https://www.krestonreeves.com/news/selling-part-of-your-garden-for-development-could-be-a-shrewd-move/



Edit to add...

Hoenir said:

The land will need to be transferred into a seperate title prior to the sale.

Why do you say that? I think that could cause extra unnecessary problems.

More to the point, how would you do it? I thought there were difficulties in splitting title by any method other than transferring it to another party - so it would seem easier just to allow that to happen when the buyer registers their title.