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One-third of the garden of a client’s only or main residence is to be sold for £250,000 and another house will be built on the ground. The whole property was originally purchased for £200,000
As a result of the rerouting of a nearby major road that passed through it a local area has become very much more desirable for residential purposes. As a consequence several of my clients who live there either already have or are now looking into selling part of their gardens for development as housing.
As an example one of my clients has recently received an offer from a local developer to purchase one-third of her garden for £250 000. The house and the grounds in which it stands were originally bought for about £200 000.
Are there any potentially adverse capital gains tax consequences that I should be aware of or are these gains automatically covered by the only or main residence exemption? Any general advice would be welcome.
Query 18 343 – Adam
Reply from Taxdesk Gabelle LLP
Adam raises an...
