Paying tax on selling my smallholding.

ameeyal
by ameeyal 09 January 2013  |  Comments 4 comments  |  Love Love  0 loves

I plan on selling my 13 acre smallholding, valued at £600.000, i dont run a bussines from it and have made money on it from buying it 17 years ago. I have been told by an accountant that i will have to pay tax on the land when i sell it {around £50-£60 K} if this is true i can not afford to move to the new place i want, Any advice Thankyou.

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Comments (4)

  • MikeGG1
    Love rating 909
    MikeGG1 posted

    Do you live on it? If so, you would get Principal Private Residence relief on the house and a certain amount of land. I don't know the exact amount.

    The rest of the land would be subject to Capital Gains Tax.

    I don't know the way that it would be done, but would assume that the house and garden would be valued and the difference would be the taxable land value. That portion of the overall gain would then have the annual exemption (£10,800) deducted. If there was any spare basic rate band left, that would attract 18% tax and any remainder would attract 28% tax.

    I have assumed that you are the sole owner. If not, then split the taxable land value and deduct £10,800 from each portion before assessing the tax individually.

    Mike

    Posted on 09 January 2013 | Love Love  0 loves Report
  • MikeGG1
    Love rating 909
    MikeGG1 posted

    If you are the sole owner but are married then transfer it into joint names first and that would be the same as if you had jointly bought it at the outset.

    Mike

    Posted on 09 January 2013 | Love Love  0 loves Report
  • lynmouth1
    Love rating 2
    lynmouth1 posted

    I believe the maximum which qualifies as garden land is one acre (or at least it was some years ago).

    Posted on 15 January 2013 | Love Love  0 loves Report
  • RichardSowler
    Love rating 18
    RichardSowler posted

    The maximum area was 'modernised' some time ago to 0.5 hectares (1.25 acres approx). The other thing to bear in mind is that a larger area may be included if the adjoining house is of such a size and character to justify that larger area.

    Posted on 15 January 2013 | Love Love  0 loves Report

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