Hello,
My mothering law and ourselves recently sold our respective houses in order to move to a new location for schooling for our kids. We previously lived next door to each other and decided to look for a building plot to self build two new houses, one for each of us.
Land was difficult to find and we eventually bought a plot which had outline permission for three houses. We bought the plot on a 50/50 basis in all three names. Due to financial constraints we have had to live in rented accommodation and build just one house which we all intend to move into in order to free the rent burden.
We will then begin to build the second property which will take around a year. If we then sell the first house and all move into the second would we be liable for CGT? our intention would then be to build the final property. My mothering law would remain in the second and we would move to the third.
When we set out it looked like there would be no profit from the first house, going by valuations, but it was a means to an end to get what we wanted. As houses prices have risen it looks more likely that there would be a gain from the first house when we sell.
I am in full time employment and am trying to do as much as I can on the build to keep costs down. I’m just wondering what the best course of action would be in terms of any tax liability.
Regards
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