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Tax Position

Tax Position

If a freehold property has sufficient land so that a new build can be developed, does the profit go through Capital Gains?

If it does go through capital gains, can the owner sell the existing plot and move into the new build to use as primary residence?


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By Tosie
29th Mar 2012 20:39

not enough info:

To answer the question a lot more info is required. Who owns the property > Do they live in the house ? What is their trade, I could go on.

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By pk0608
30th Mar 2012 08:15

Tax Position

Ok I understand that if the principal private residence (PPR) was to be sold with only part of the garden that this would still be exempt from capital gains tax(CGT).


This would then leave a potential undeveloped plot without the PPR exemption.


However, if the new plot was built first and then effectively allowed the owner then to have two properties, could the first property be sold which was the principal private residence, then move into the second property and after a period of occupation be sold with CGT?

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30th Mar 2012 11:07

maybe is the best answer....

The difficulty is that you would need to establish the second property as a residence, not just occupy it.  There is no minimum period of occupation for this - read Goodwin V Curtis and HMRC CGT Manual for further information.

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