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Capital gains tax on land over 1.2 acres.
Our clients have found a house that they wish to buy and which has 2.2 acres of garden. The vendor wants to downsize because the garden has become too much for him to maintain. He understands that he will have to pay capital gains tax on any land above 1.2 acres that he sells – so on about an acre of his land. If they go ahead with the purchase it may be that they will have to move on from the property in a year or two.
Can Taxation readers advise on how HMRC calculates the capital gains tax due on land of more than 1.2 acres? And is there any way around this liability either for the vendor or indeed for the clients if they do sell the property in a year or two?
Query 19 261 – Jamie and Eve.
Reply by Bramble
The reasons...
