Selling land for building: Ensuring main residence relief appliesby
Last year (2017), the number of new homes built reached its highest level since 2008 but even so, this figure falls well short of government targets. The Mayor of London's 'London Plan' gives an indication as to how this number may be increased by imposing numerical targets for building on what is termed 'small sites' in each London borough. 'Small sites' will undoubtedly include building within the grounds of properties with large gardens.
Capital Gains Tax (CGT) will be the usual tax point on the sale of any land but in certain circumstances income tax may also be charged, as well as there being the potential of stamp duty land tax, VAT, and even inheritance tax.
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