[Dave]

After looking at my latest Pension forecast I realise I will have to make some money elsewhere if I want to retire at a decent age

Over the years I've done quite well out of property, by buying ones that need work, move into them, do them up & flog em on. Big plus of this is it's tax free profit After a bit of investigation I have found local councils are getting huge pressure from the Goverment to infill in villages / towns instead of releasing more green belt for builders. You probably have noticed, as I have, the number of properties being crammed into every spare space.

So the current thinking is, buy a property in a village, where council are supporting infill, with a large enough plot of land to build another house. Question is whether to get planning permission & sell land to developer, or go the whole hog & build & then sell.
One big influence on this is are you liable to tax for just selling off land ? My initial thoughts are you shouldn't be, as you are selling part of your property which will be devalued accordingly. Any Tax experts out there know the answer ?

Ultimately want to sell land to pay off mortgage & hopefully a bit left towards earlier retirement.

[Joe T]

If you sell part of your property, you need to get a valuation on the remainder. The capital gain is based on the sale proceeds less the cost (which is apportioned on the value of what you sold and on what you have left).

Does that answer your question?

[Venomator]

I believe you will only be liable to Capital Gains Tax ... and then only if you reach the CGT threshold - not sure what it is now but it is well into six figures - any interweb search should throw up the answers for you ?

[Dave]

Originally Posted by Joe T

If you sell part of your property, you need to get a valuation on the remainder. The capital gain is based on the sale proceeds less the cost (which is apportioned on the value of what you sold and on what you have left).

Does that answer your question?

Cheers Joe....thank god your an Accountant & not a student

Just need to find right proerty & dodgy estate agent to give low valuation after sell of land

[Dave]

Originally Posted by Venomator

I believe you will only be liable to Capital Gains Tax ... and then only if you reach the CGT threshold - not sure what it is now but it is well into six figures - any interweb search should throw up the answers for you ?

I think the limit is £7k per year ? .....is it not inheritance tax that is around £270K

[RobertP]

I think so (7k). If you have not used your allowance in previous years that counts too. Think it is something like 4 years you can go back maybe more.

[Joe T]

Originally Posted by DJW

Cheers Joe....thank god your an Accountant & not a student

Just need to find right proerty & dodgy estate agent to give low valuation after sell of land

Happy to help.