CGT or Income tax liability in this scenario advice. Please

[pcheaven]

Some general advice / comments if possible please

I have a Buy To Let property, and have secured planning permission for a new dwelling in the garden

If I sell the land, is the income taxed as Income Tax? Or CGT

Also, if its as CGT, is this calculated upon sale of the garden space or after the remainder of the site is sold

Any advice welcome, many thanks

[jerome.lane]

You should still achieve CGT treatment on the sale of the land if you have done no more than obtain planing permission.

The CGT will be calculated by reference to the open market value of the land sold. So, if title is split, a part disposal calculation will be necessary.

If you ever lived in the buy to let, you should get tax advice and support as it may be advantageous to get an agreement on the valuation from HMRC. Using an apportionment method instead of an accurate valuation could be detrimental.

You should seek professional advice on this matter. God luck.