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Where Taxpayers and Advisers Meet

Splitting off plot of land on house sale

dotto
Posts: 51
Joined: Wed Aug 06, 2008 3:16 pm

Splitting off plot of land on house sale

Postby dotto » Thu Mar 12, 2009 4:52 pm

Since my mother died, I have owned the family bungalow which stands within a fairly large plot. I still live in the bungalow but intend moving when I find a suitable alternative home. I would like to sell the bungalow and plot of land as two separate transactions - the plot is currently part of the garden. I understand that I will be able to do this without incurring any capital gains tax as long as the plot is sold before the sale of the bungalow goes through and that the bungalow is still my home at the time. I have been told that there needs only to be (for example) one day between the two transactions. Your help would be appreciated.

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Re: Splitting off plot of land on house sale

Postby Peter D » Thu Mar 12, 2009 5:03 pm

The date of 'exchange of contracts' is the important one. Yes you will need to be livinh there as your sole PPR and the area of the land compliant with the rules and it will be CGT free. I would not cut it too close with the dates as completion is not 100% guaranteed and could go wrong on the sale of the land. Regards Peter

dotto
Posts: 51
Joined: Wed Aug 06, 2008 3:16 pm

Re: Splitting off plot of land on house sale

Postby dotto » Mon Mar 16, 2009 11:21 am

Thank you for your reply which was very helpful.

DC


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