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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4995
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am building abunglow on my land next to my house if I sell

Customer Question

I am building abunglow on my land next to my house if I sell when completed am I liable for c g tax
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

First of all, if this is not going to be your residence then the gain would be chargeable to tax.

Now lets consider what tax ....

If you were to build a property and sell it on completion then in the eyes of HMRC you are a property developer albeit it is one house only and the profit made would bedeemed income from trade and chargeable to income tax and Class 4 NIC.

If you were to build a property with a view to letting it or moving into it, and after a period you sold it you are viewed as property investor and the gain would be chargeable to capital gains tax.

I hope this is helpful and answers your question.


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