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Where Taxpayers and Advisers Meet

Farmhouse - Barn split

Pegsw
Posts:1
Joined:Thu Nov 16, 2023 9:38 pm
Farmhouse - Barn split

Postby Pegsw » Thu Nov 16, 2023 10:02 pm

Hello,

I am looking to buy a Farmhouse in a derelict condition which is set on a 2 acres plot (1.2 acres is a paddock). It has several outbuildings. One set of outbuildings, old barn, sits on the opposite side of the drive to the house and these are just overgrown ruins.
I am buying the house by myself and currently do not own a house.
What I am thinking of doing (while not being hindered by any knowledge currently) is to renovate the Farmhouse and then sell the Farmhouse and garden (about 0.5 acres) on one side of the drive. Keep the land and barns on the other side of the drive (barn plus paddock, about 1.5 acres)
While I am renovating the Farmhouse I would like to apply for planning permission for the barn ruins. As when I sell the Farmhouse I would like to start to renovate the Barn ruins straight away.
Question 1: I am hoping that as the Farmhouse will be my only residence while I renovate it, I will be able to sell this without having to pay CGT, is that notion correct?
Question 2: will it matter that I keep part of the land, and that this has a ruin on it with planning permission, regarding any potential tax payments? The barn would be my new residence after renovation.
Question 3: as all this will take quite a few years, if I wanted to sell the barn at some stage, while it being my own, sole residence, what would my tax liability be?
Sorry for the number of questions but I just cannot find any answers that are similar to mine.
Kind regards,
Pegs

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