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!
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.
It is worth clarifying if 'development land' issues arise. This would have an impact on the calculation and the amount of relief. See page 16 of this PDF (specifically, section 3.23):