Garden Land Sale

[peterfenn]

Dear all,

I bought a house 5 years ago in a town, but with a large garden (approx 1.8 acres). I paid £1.3m for it. I've just got permission granted to build a new house in part of the garden (that we don't use). If I sell just that section of garden with plans (approx 0.5 acres of the total plot) what are the CGT implications please? I've always thought that as it was still part of our primary residence it would be exempt - but it seems that as the entire existing site is more than half a hectare there might be some CGT payable. Are there any ways around this please? What about putting the new plot, or existing property into my wifes name or something? Currently, the existing is in joint names.

Any help greatly appreciated.

Many thanks,

Peter

[peterfenn]

I guess I need a few more views before someone offers some advice. Only 2450 so far.

Thanks in advance

[Lee Young]

There will be a capital gain on the sale of this piece of land because your entire plot is more than half a hectare and clearly this part of the land is not required for the reasonable enjoyment of the property. Putting the separate plot into the your wife's name will not help as the two of you cannot have more than one main residence and there is no property on the land in which she could live and possibly claim the relief in any event.