Tax on house sales

[Max Power]

Has anyone had experience of selling a home that has a piece of attatched land with planning permission. How is it classed taxwise compared to the property without the planning ?

 

[pcb1962]

When my father was in the same position we fenced off the land to be sold, did the necessary land registry stuff to dissociate the two, and sold them completely separately. As far as I remember there would be CGT to pay on the land sale, not on the house as long as it's your primary residence.

 

[Max Power]

When my father was in the same position we fenced off the land to be sold, did the necessary land registry stuff to dissociate the two, and sold them completely separately. As far as I remember there would be CGT to pay on the land sale, not on the house as long as it's your primary residence.

Thanks, that is what I'd do if I wasn't intending moving, I was just wondering if there was a more tax efficient way to go about selling the whole

 

[Blackswanwood]

It is possible that Private Residence Relief will still apply in respect of Capital Gains Tax. As this is an increasingly common type of transaction I would expect your solicitor to know how to position the matter to get the best tax treatment.

 

[Rorschach]

Speak to a solicitor. Splitting the land will almost certainly affect the tax status however selling as a whole will get a lower overall price. You may pay more tax by splitting but the increase in sale price may far outweigh any tax liability.

 

[Blackswanwood]

I was wondering a bit more about this ... selling-land-for-building-ensuring-main-residence-relief-applies. Looks like plenty of scope for it not to be table but obviously depends on the individual circumstances.

 

[Terry - Somerset]

The rules are complex but if the land being sold is part of a garden attached to your principal private residence then generally no capital gains tax is payable providing:

- the land was previously occupied and used as a garden, not a business
- it is less than about 1.2 acres
- the land is sold at much the same time as the house

However given the complexity of making sure you get all the right ducks in the right order you should get professional advice, not rely upon a web search!

It would be too easy, for instance, to register the land separately from the house only to find that the PPR relief then disappears!

 

[HappyHacker]

As is usually with UK tax - It depends.

When I last looked at it so that I could sell part of my garden with PP it depended on the size of the garden and whether the plot had been used as part of the garden amongst other things.

You need specific advice from a good accountant about your particular circumstances.

 

[AJB Temple]

I think I might nip onto a taxation forum and ask them how to make a table out of pallet wood.

 

[bjm]

I think I might nip onto a taxation forum and ask them how to make a table out of pallet wood.

Well that would be a waste of time - everyone knows those tax people only do metalwork!!!

 

[stuartpaul]

Well that would be a waste of time - everyone knows those tax people only do metalwork!!!

No!! Everyone knows they're into catering, - how else would they know about cooking the books?!

 

[Max Power]

"I think I might nip onto a taxation forum and ask them how to make a table out of pallet wood."
It was a general enquiry at a very early stage and I shall certainly take advice when the time comes as it will be a 7 figure sum involved. However there is a wealth of life experience on here and some very knowledgeable people as well as a fair amount of professionally qualified members.