A possible complicated Capital Gains tax question.
Hi. My wife and I bought a house with a small workshop and yard attached in 1984. We specifically bought the property so that I could use the workshop as I was self employed at the time. We paid £32,500 for the property. We moved home in 1990, selling just the house for £71,000 and kept the workshop and yard. At the time, the whole plot (house and workshop) was valued at £87,000. It retained its original land title and a new title was created for the house that we sold. I continued working there until 1995 when I left to work for a company. It was just used for car parking and storage. I started another business and resumed work at the workshop in 2014. I am considering retiring in the next year or two. Two years ago I had plans drawn up and obtained planning permission to build a house on the plot . I was not interested in building the house so I obtained three valuations from local estate agents valuing it between £160,000 and £250,000 with a view to selling the plot on with planning permission. A wide price range I know but assuming it was sold in the mid-range of those figures (£200,000), how much capital gains tax would my wife and I have to pay? One other question, if we split it into two separate plots, workshop and yard, could we sell one plot at the very end of the financial year and the other, a day later, in another financial year to get the benefit of our capital gains allowances? Thanks.