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wingrovebuyer
wingrovebuyer, Senior Solicitor
Category: Property Law
Satisfied Customers: 737
Experience:  Bachelor of Laws (Honours); PG Diploma in Law; Member of ALA; 9 years' experience
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We're considering buying an empty plot of land and then sectioning

Resolved Question:

We're considering buying an empty plot of land and then sectioning off some of this land, getting planning permission for a home, and selling this plot. We would do this in order to finance the build of our own home on the rest of the land.
Could anyone tell me if this would be subject to Capital Gains? We would live in the second house for a long time, but don't know if the gain would have to be reported in-between, as we wouldn't be living there, or if it would count as reinvestment.
Submitted: 1 year ago.
Category: Property Law
Expert:  wingrovebuyer replied 1 year ago.
Hello. You wouldn't pay CGT on the sale of the second house, as it would be your primary residence and those are exempt from CGT. However, you would be liable to pay CGT on any profit you make on the sale of the first plot, even if you plan to reinvest this in building you own house. Best, WB.
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