Tax on sale of land

I would appreciate your advise on taxation. I own 3 properties in a terrace next to each other. I live in one of these, the other 2 I rent as a landlord. I am considering seeking outline planning permission for a residential dwelling on the gardens of the 2 rented properties. I have previously lived in both properties. I’m struggling to understand the position regarding tax and would very much appreciate any advice. Thank you

Hi Petjoke,
Tax would only be a consideration if/when you decide to sell the properties.
Plesae see guidance here:
Tax when you sell property
Thank you. 


 

Thank you for your reply. So as the land is spread against 2 properties would 50% of the sale profit on the land be added to the sale price of each house when they were sold and CGT applied to the whole? Thanks

Hi,
As you are likely to be making part disposals, you would need to consider the effect it will have on future capital gains computations.
Guidance on part disposals can be found here:
CG71800C
Thankyou.