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Where Taxpayers and Advisers Meet

Land Sale Question - CGT at 20% or 28%

ssmyth
Posts:5
Joined:Sat Mar 06, 2021 2:15 am
Land Sale Question - CGT at 20% or 28%

Postby ssmyth » Thu May 13, 2021 5:27 pm

Hi,

I shall be obtaining planning permission for a new dwelling on the driveway/garage block of an existing residential investment property I own.

When I sell this development plot land for someone else to build, I understand that CGT will be payable on the gain however would this be at 20% or 28%? There is no existing residential dwelling on the actual development plot land however it is currently part of the permitted area of the existing residential investment property I own.

I have read some guidance saying that 20% CGT would be payable since there is no residential dwelling on the development plot land itself. I also elsewhere have read that 28% CGT would be payable since this development plot land is part of the "permitted area" of the existing residential investment property I own.

If anyone has experience in this area, any thoughts would be much appreciated. Thanks in advance. Sarah

maths
Posts:8234
Joined:Wed Aug 06, 2008 3:25 pm

Re: Land Sale Question - CGT at 20% or 28%

Postby maths » Fri May 14, 2021 2:03 pm

An analysis of Sch 1B TCGA 1992 I suggest supports the view that the 28% rate applies.


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