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Capital gains tax on main residence with attached seven-acre field.
My client’s husband and his wife are in the process of selling their house which has a seven-acre field where they keep horses. They have not used any part of the property for business or rented it out. However on reading the HMRC website it appears they may be liable for capital gains tax.
They bought the property for £378 000 and are now trying to sell it for £580 000. To date they have spent around £150 000 on renovating the house and about £10 000 on re-fencing the land. They have also purchased about half an acre from a neighbour as an extra garden (for around £12 000) but they have not yet removed the fence or applied for planning for change of use from agricultural use. Unfortunately they do not have receipts for all of the refurbishment work.
My question is...
