Anyone know anything about CGT?

Found 3rd Jul
Have lived in same house with large garden for 40 years. Just got planning permission for bungalow in garden. If I sell this part of the garden will I be liable for capital gains tax?
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I am not an expert but know someone who has done a similar thing.

You are no longer selling your main residence. You are creating and selling a parcel of land with its own deeds..

You must make a fair assessment of the land value but I believe you are NOT liable for the CGT until you realise the profit (which is normal for CGT) by selling one or other property. I don't think renting the property triggers CGT so long as it remains in your name.

You can work your way around CGT by ACTUALLY moving into the property built on the land if you are so minded. Do not be fooled by old wives tales of yesteryear about making this a nominal transaction. You need bills, council tax payments etc for a period of time to nullify the charge.

Remember that a new build attracts 0% VAT when looking at any costings.

You need a solicitor to draw up a new Deed for the grounds and (s)he can advise you on SDLT. .

I would talk to a Surveyor, an Accountant and a Solicitor to professional opinions and to discover little tweaks.
Edited by: "ccnp" 3rd Jul
Guzzle20 m ago

Thanks. That looks like the answer I would like as I fulfil the 4 conditions for exemption.
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