This is a bit of a sorry tale but here are the basics:
We sold our house in 2009 and moved to a different area, where we bought a plot to build a house for ourselves to live in and moved into rented accommodation nearby.
We commissioned an architect to come up with plans to demolish the derelict property on the site and build a new one but we then discovered we were £200k short. We ended up having to pay the architects a large fee, and walked away from that design. We then went down a different route with another designer and got permission for a different house. Even though I have inherited some money (probate shortly to be completed) we are not quite going to have enough to do this, so we have put the property on the market and have agreed a sale. The property has of course had the benefit of our time and planning permissions, and we have sold it for £190k more than we paid for it. Costs for our rented accomm have been £139k plus associated design / architect / technical report / planning fees of approx £55k.
This isn't a great time for us and now I am really concerned that we are about to get stung for Capital Gains Tax. I hope not, obviously. We are self-employed and if we had intended to do this commercially we would of course have claimed tax relief on the expenses to do with this. The intention though was to move in for ourselves, and any question of having to abandon it and pay CGT wasn't part of our plans.
Could anyone advise on whether we are OK to complete the sale or whether there is anything we need to do?
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