Sale of garden plot for development

Client has sold part of their garden to developers - residential or non residential property ?

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My client is in the process of selling a part of their garden to developers for future building development. Will this be  classed as non residential property since there is no building on the land at time of sale and hence the need to report and pay and CGT  in 60 days does not apply ?

Replies (7)

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By Wanderer
22nd Feb 2024 10:42

Shouldn't you be investigating whether PPR relief applies first before you consider whether it is non residential?

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By David Ex
22nd Feb 2024 10:43

I vote no but suggest a read of the legislation so you can satisfy yourself that you are advising your client correctly.

Thanks (1)
By FactChecker
22nd Feb 2024 12:57

Property doesn't always mean the same as Buildings.

You need a deeper dive both into the specific facts of your client's case and into the legislation, before jumping to conclusions.

Thanks (4)
By lionofludesch
22nd Feb 2024 13:19

How big's the garden?

And how big's the house?

There's no yes/no answer from the scant information in the OP.

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By cohen
22nd Feb 2024 13:21

Look at the definition at 3 1 b - I would say that a garden generally exists for the benefit of land that includes a property, but each individual case will be different

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Jessica Pillow
By Jessica Pillow
26th Feb 2024 11:05

I had a tax enquiry on a similar matter to this and here's the inspector's comments on why he felt residential CGT rate applied:
As set out at TCGA1992 Schedule B1 para 1(2), there is a disposal by a UK resident of a ‘residential property interest’ if ‘the land has at any time in the relevant ownership period consisted of or included a dwelling, or the interest in UK land subsists for the benefit of land that has at any time in the relevant ownership period consisted of or included a dwelling’ and if ‘the interest in UK land subsists under a contract for an off plan purchase’.
Therefore I think you will have to do 60 day reporting but you may be able to get PPR (that's a different matter for you to consider).

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Replying to Jessica Pillow:
By Windy
26th Feb 2024 11:21

Thank you very much Jessica - that is very helpful

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