Total beginner on capital gains tax - does anyone one....

[h0rsewithn0name]

Does anyone know the answer to this? I'm probably being really stupid for not getting this, but I'm keen to settle this honestly and correctly.

I have received a sum (£2.5k) from a land agent. I own a plot of land, and the agent has the option to buy it, so the money is similar to a reservation fee. I've agreed not to sell it to anyone else in return for £2.5k. Coincidently I've used my capital gains allowance this year on a totally unrelated matter, having never had to pay it before.

I thought I'd declare this £2.5k online via the gov website, however it says very clearly the tax relates to assets that have been sold or discharged. How does my gain fit in? We haven't sold anything, but clearly we have received a sum of money that should be taxed.

We're not well off at all, and certainly haven't needed to have a financial advisor before, thought of course I may well do in the future. Is there anyone in the know, who can advise me please?

It is income

Thank you, so I should add this on the next self assessment form, instead of a capital gains declaration? That would be much easier, if that's the case, although of course taxable at a higher rate.

Op, you need to google for "tax on land options". Usually it will be subject to CGT, but sometimes to income tax. The amount in question isn't worth getting professional help, I can see (although that's what should really be advised), but at least if you do your research and keep records as such, you'll have them if HMRC ever ask.