CGT on sale of strip of land that is part of principal private residence

Discussion in 'Tax' started by boltownes, 19 Feb 2019.

  1. boltownes

    boltownes Registered User

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    Hi, my neighbour wishes to buy a strip of land that is part of my principal private residence. Will I have to pay tax on the sale? I don't have any other properties. Thanks in advance!
     
  2. RedOnion

    RedOnion Frequent Poster

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    Is your total site area less than 1 acre?
     
  3. boltownes

    boltownes Registered User

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    It is.
     
  4. RedOnion

    RedOnion Frequent Poster

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  5. boltownes

    boltownes Registered User

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    Thank you very much!
     
  6. RedOnion

    RedOnion Frequent Poster

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    @boltownes
    Just to qualify my post. Assuming the house was your PPR for the entire time you've owned it, the exemption will apply.
     
    noproblem likes this.
  7. boltownes

    boltownes Registered User

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    Great, thanks again.
     
  8. Saavy99

    Saavy99 Frequent Poster

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    What's the story if the house wasn't the PPR for the entire period of ownership?
     
  9. RedOnion

    RedOnion Frequent Poster

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    The exact same as CGT on disposal of house.
    A cost price would have to be calculated for the portion being sold, and the gain allocated over years it was PPR would be exempt, with final 12 months deemed PPR.

    So if you owned for 10 years, and lived in for the first 5, then 6/10 of the gain would be exempt.
     
  10. deadlyduck

    deadlyduck Frequent Poster

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  11. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Correct. You need to look at whether there’s a difference between current use value and market value.