Quizzes & Puzzles31 mins ago
Plot for house
If person sells part of garden as a plot for a house do they have to pay huge taxes on profit made??
If the sale of land is needed to rewire and reroof main residence, can the money made be used to pay these essential bills, before seeing what profit, if any left??
If selling property with a big enough garden as a plot is it best to sell as two seperate deals or are there more legal problems/taxes to considered?
If the sale of land is needed to rewire and reroof main residence, can the money made be used to pay these essential bills, before seeing what profit, if any left??
If selling property with a big enough garden as a plot is it best to sell as two seperate deals or are there more legal problems/taxes to considered?
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If this is all in the UK, and this is your main residence, no capital gains tax is payable. Therefore there is no tax to pay at all - you can use the money for whatever you wish. The only problem arises if you own a huge garden that you split in this way - greater than 2.5 acres.
The way you MUST do it to avoid CGT is to apply for and get planning permission on the WHOLE site before you split it into 2 (you will probably have to employ a solicitor to split the site at the Land Registry until you know about such things). Then sell the separated plot.
The way you MUST do it to avoid CGT is to apply for and get planning permission on the WHOLE site before you split it into 2 (you will probably have to employ a solicitor to split the site at the Land Registry until you know about such things). Then sell the separated plot.
Oops, the last sentence is misleading. When you sell the plot, you advertise it and get a buyer whilst the whole plot is still part of your main residence. Then at the point to sell it, your solicitor separates the two plots. What you have sold is definitely then part of your main residence (for tax purposes).
This may change in the not too distant future.
There has recently been aprivate members bill in parliament which would classify gardens as greenfield rather than brownfield which would make it much more difficult to get planning permission.
http://www.gardengrabbers.co.uk/news/Garden%20 Grabbers6716.ink
There was also some discussion about a year ago to make the rise in value of a plot due to planning permission taxable, the money being used to invest in infrastructure where populations are growing.
I don't think anything is imminent but it's definately on the political agenda
There has recently been aprivate members bill in parliament which would classify gardens as greenfield rather than brownfield which would make it much more difficult to get planning permission.
http://www.gardengrabbers.co.uk/news/Garden%20 Grabbers6716.ink
There was also some discussion about a year ago to make the rise in value of a plot due to planning permission taxable, the money being used to invest in infrastructure where populations are growing.
I don't think anything is imminent but it's definately on the political agenda
The latter happens already Jake - they are called Section 106 Agreements. They have been around a long time but used to only be 'levied' on large scale developers of many houses. Now it can is is being applied to owners of single plots. They say - sure yes you can have PP, but only if you pay say �20K into the infrastructure fund. All perfectly legal. Not heard about your first point - I'll check it out.15K -
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