Tax liability on demolishing family home and building 2 new houses?Make Text Bigger
I have just gained planning permission to demolish my family home and attached granny flat and in their place build 2 x new 4 bedroom detached houses. My family have lived in the house for 38 years and the granny flat is now 30 years old. My eldest daughter now lives in the granny flat as her PPR.
It is our intention to live in one of the new houses and sell the other one to pay for the development and hopefully top up my pension with what is left over. My daughter will find somewhere else to live.
My question is what will my tax liability be on any profit from the development. I have discussed this with an accountant, but he isn’t sure of my liability, he thinks I may be liable for income tax rather than CGT.
It has also been suggested that I set up a limited company and sell the land to the company, but wouldn’t we then have to pay stamp duty?
The local council who have approved the development have accepted that as a self build on one of the properties and the rest of the development being under 100 sq mtrs increase we are not liable for CIL.
Anyway thank you in advance for any help and advice you can offer.
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