- Plan ItBack
- Design ItBack
- Build ItBack
- Homes
- Products
- CostsBack
- Self Build Cost Calculator
Estimate your project costs instantly with Build It's interactive self-build cost calculator
Calculate Now - Costs & Finance
- Contracts & Warranties
- Build It Estimating Service
Get an accurate, detailed cost breakdown of your project
Submit plans
- EventsBack
Q&As
Do we owe Capital Gains Tax on gifted land?
My parents gifted me some grassland, and at the time the value of transfer was £1,500. Since the transfer I have been able to secure planning permission for a self build which I would intend to live in.
The value of the grassland was below any capital gains tax threshold. Also, at the time of transfer it would not have been reasonable to assume that planning permission would be granted as it was against the planning authority’s policies because they believed the location was unsustainable.
Can anyone advise if any capital gains tax would be due?
Answers
Let me start by mentioning that I’m not an expert on Capital Gains Tax and my advice would be that you seek guidance from an accountant.
However, for what it’s worth, my understanding is that if the site is subject to a self build, which you then occupy as your principal private residence, CGT would not be applicable should you ever come to sell the house in due course.
My understanding is that CGT could be payable if the plot changed hands (eg you sell it before building your own home), or if the house was sold on completion but before occupation.
Mike Dade (Build It contributor and planning consultant at Speer & Dade)
Worth considering that this kind of situation can also become subject to Inheritance Tax Rules.
One of our experts, Tim Doherty, takes a quick look at CGT and inheritance tax in the comments section at the end of this feature: https://www.self-build.co.uk/budget-family-home which may answer some of your questions.
Chris Bates, Deputy Editor & Online Editor, Build It magazine
