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How does capital gain tax work if I build another property in my garden and then sell one on....?

(5 Posts)
mulranna Mon 02-Nov-15 14:30:54

Just that really....alternatively if I were to extend my single property to create 3-4 apartments and then sold them - would I pay capital gains tax on each or not?

NickNackNooToYou Mon 02-Nov-15 22:34:30

I am no expert but I think you are only exempt from paying CGT if you've lived in a property for a certain amount of time. So as you are creating new properties unless you live in them for so long before you sell them you will be liable for Capital Gains Tax.

Fuckitfay Mon 02-Nov-15 22:41:50

This article may help but sounds quite complex!

www.grantthornton.co.uk/en/insights/tax-traps-and-tax-smart-ways-to-build-a-house-in-your-garden/

mulranna Tue 03-Nov-15 14:15:59

Wow - thanks -- looks v complicated - so you have to decide if you want to pay income tax or CGT - it appears I will need to invest in good legal advice

Fuckitfay Tue 03-Nov-15 18:34:29

I think you need tax advice from an accountant rather than a lawyer but I may be wrong. That link is to an accountancy firm's site

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