CGT on property with land

[Paul E]

Considering buying a property with one and a half acres of land, i.e. slightly above the half a hectare allowed for a residence to qualify for full CGT allowance on any gain in value.

Can anyone advise on the implications of this? If we sell up in future will we have to pay CGT on the full increase in value?

[accountant@uktaxshop]

Paul,

I suggest your first step should be to check with the vendor if there is already any arrangement to treat the property as exempt from CGT.

If the land is in keeping with the house, the half hectare rule may not be applied. Assuming it is to be your main residence, no CGT will then be due on a sale.

Regards

James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436