This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax implications of building a second property

LJFTAXTIME
Posts:1
Joined:Wed Feb 22, 2017 1:44 pm
Tax implications of building a second property

Postby LJFTAXTIME » Wed Feb 22, 2017 2:02 pm

Hello,

My parents both own and live in 1 property and have been there for the last 10 years.

Within the plot that is owned, there is space to the side of the property for another house. This option is being looked into as this is one way to cover mortgage costs and to have a retirement fund.

The problem is:

Is there any tax implications of building this house?

Area's i am concerned about:

At the point of splitting the land - is each plot revalued? ( one with a house on and one with pending planning permission )

At the point of revalue and split of land what happens to the PPR RELIEF?

Once the build has been completed if selling the orignal home and moving into plot 2 would there be no tax due to using PPR?

Sorry for my wording this seems to be a grey area and ive tried to be specific as possible!

Thank you

Return to “Property Taxation”