Approx 11 years ago a bought an unconverted barn set in approx 6acres. We converted the barn and have been living in it as our main house for 10 years and now wish to sell. Once converted around 1 acre became the garden with the other 5 acres being an agricultural field. The best way to describe it would be a smallholding with various outbuildings. I paid 150k for the barn and land (unconverted) with conversion costs etc of approx 140k and expect to sell for 550k........what would my capital gains tax implications be?
You need to treat these as two separate assets. The sale of the barn plus 1 acre whould qualify as a main residence and won;t need to be disclosed on your tax return as the amount of land is within the permitted amount allowed by HMRC. The other land and outbuildings will be taxable. You will need to get the 5 acres and outbuildings valued at the date of purchase (11 years ago) to calculate the capital gain.