Just over two weeks to go until our brand new show!
Build your dream home with confidence
BOOK YOUR TWO FREE TICKETS HEREBuild your dream home with confidence
BOOK YOUR TWO FREE TICKETS HEREEstimate your project costs instantly with Build It's interactive self-build cost calculator
Calculate NowGet an accurate, detailed cost breakdown of your project
Submit plansI am negotiating to buy the bungalow we are currently renting and hope to get permission to knock it down and build three timber-framed houses on the site. I would then sell two and keep one to live in. How would I be affected by capital gains tax in these circumstances?
Capital gains tax only applies if the house you are selling is not your principal residence at the time of the sale. In your case, CGT shouldn’t apply to the bungalow you knock down or the house you eventually move into. You would, of course, be liable to CGT or corporation tax on the sale of the other two houses depending upon whether you are acting as an individual or trading as a company at the time. Have a look at HM Revenue & Customs’ website www.hmrc.gov.uk/cgt – there’s a wealth of good information there that will help. Also helpful is the Revenue’s free leaflet CGT/ FS1 A Quick Guide to CGT; or visit your local tax office or HMRC enquiry centre.
