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CAPITAL GAINS TAX ON BUILDING PLOT SALE
hlane1
Posts: 14 Forumite
Our main residence is a small cottage which is surrounded by 3 acres of land. We have secured planning permission on a part of the garden and will be selling the land to a builder. The proceeds from the sale will be roughly 2/3rds of our existing outstanding mortgage, and we will pay the full sum, less costs of selling, towards reducing the mortgage. We will not keep any of the proceeds for personal use. Will we have cg tax to pay on the sale sum @ £200,000? Any advice would be welcome
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Comments
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What you do with the proceeds has no bearing on whether CGTis payable or not. As the land sits on is over 1.2 acres it is not that straight forward.
https://www.krestonreeves.com/news/selling-part-of-your-garden-for-development-could-be-a-shrewd-move/
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Separate to your question, is your mortgage provider aware of the proposed sale. I'd hope they'd be ok since you plan to pay down the mortgage, but they may want to be involved.0
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