Selling my garden and pony paddocks?

Hi Albert

I quite like option 3 but a lot more detail would be needed in order to answer your questions comprehensively and with confidence.

Please book a Tax Planning Consultation with Property118

Mark, thanks for reply. Please fire any questions at me, what else do you need to know. Albert

I believe that there is no tax if you sell your garden for development, that is the way it used to work as my neighbour sold part of his garden for development tax free (under 1 acre)

However I believe that only 1 acre or just over can be sold tax free, therefore would it be possible to obtain a separate title for the remaining two acres and therefore reduce the tax.liability.

I believe that only a house and 1 acre can be sold free of CGT and any land in excess of that is taxable.

The law may have changed now.

Statex , thank you for the reply. HMRC allow upto 1.25 acre (O.5 hectare) as garden to be exempt, unless the house is something magnificent and needing larger grounds. Our two paddocks are on a separate title, do we look to channel them into the property partnership or into our existing property development company before selling onto a bigger developer. Thanks, Albert

Hi Albert

As Mark Alexander has said, there are a lot of variables at play here and likely more that you haven’t even yet considered.

Time for professional advice me thinks!

https://www.property118.com/tax/book-a-consultation/

I don’t think anyone knows enough to advise here. But if you don’t need the cash right now then another option could be to transfer the land into a SIPP then subsequently sell from the SIPP to a development company?

You mentioned Paddocks, I was just wondering if they might somehow fall under business or farm cgt relief?

Reply to the comment left by Tramp at 15/02/2022 – 13:20
Hi Albert

We would need to know about the ownership of each property, incomes of each owner, each owners residency status, whether any of the properties have ever been lived in by any of the owners including dates, rental income from each property, current value of each property, purchase prices of each property, rent from each property, type of each property and current financing arrangements for each property. We then need to understand your property business aspirations (short, medium and long term) and details of about your family. Ideally, we would also like to see a copy of the latest tax returns for each owner.

This is the minimum amount of information needed for us to even contemplate making recommendations. However, when we get the answers to the above questions it invariably throws up more.

Beaver, thanks. I had thought about going the SIPP route but that is fairly full and i would like to leave the 250k headroom in the sipp for growth during the next 10 years. Still a good idea for some people.
Tim, it would be stretching the limits beyond reasonable to claim it is agricultural. It is pony paddocks and we get some rental income from our friends for the grazing, stable, water and electric. This was why i thought i could include it in the partnership let property and then either incorporate it, or sell to our small development company.

Mark, we are uk residents, higher rate tax band, using vct and seis relief. Maybe pay the tax and then reinvest more in tax relief products. Maybe time for a consultation, but done those before. Thank you also for replying. Albert

Reply to the comment left by Tramp at 15/02/2022 – 19:34
Hi Albert

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