Tax implications of selling garden for a single dwelling

Bigt1300

My wife & I have applied for full planning permission to build a single two bedroomed house on part of our garden. We intend to sell the plot with planning. We have lived in our house for 14 years & it is our main dwelling. We don't own any other property. What, if any, tax are we liable to pay? I've seen mention of 1.5 acres total for a property attracting tax. Ours is certainly below this threshold. 

sheramber

You need to take professional advice as selling soon after getting planning permission can complicate matters. 

poseidon1

Bigt1300 said:

My wife & I have applied for full planning permission to build a single two bedroomed house on part of our garden. We intend to sell the plot with planning. We have lived in our house for 14 years & it is our main dwelling. We don't own any other property. What, if any, tax are we liable to pay? I've seen mention of 1.5 acres total for a property attracting tax. Ours is certainly below this threshold. 

Per article below main residence ppr relief may still be available in whole or in part, but note consequences if you then proceeded to segregate the 'building plot' from remaining garden. Also note its 1.2 acres not 1.5 .  Professional advice clearly appropriate here

https://www.krestonreeves.com/news/selling-part-of-your-garden-for-development-could-be-a-shrewd-move/

Jeremy535897

The relevant area of land, including your house, is 0.5 hectares, or 1.24 acres. Assuming that you had no intention of developing the land when you bought your property, there will be no trade. If the main residence relief rules will exempt any gain from capital gains tax, section 517M ITA 2007 will also preclude the anti avoidance legislation applying to tax the gain as income. But you must sell the new property before you sell the house you live in.