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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I bought my home seventeen years ago with its garages and outbuildings.

Resolved Question:

I bought my home seventeen years ago with its garages and outbuildings. If I now sell them separately will I incur CGT liability?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you tell me what the total area of land that you own is please. You mention garages and outbuildings. Have these been used solely for domestic purposes or storage as opposed for business purposes?
Customer: replied 2 years ago.

Total area of land less than half an acre. Garages and outbuildings used only for garaging, storage etc by me and family, never let or used for business

Customer: replied 2 years ago.

I own less than an acre of land. Garages & outbuildings used only for storage, cars, boat etc., never let or used for business

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.

Thanks.

If you sell the garages and outbuildings but continue to live in the house, then you will be treated as having made a part disposal of your principle private residence which will be exempt from Capital Gains Tax as would the disposal of a part of your garden to a developer, for example. That is, provided you meet the criteria set out in HS283 here.

If you dispose of the house and somehow retain ownership of the garages and outbuildings which you sell later, then you will have a Capital Gains Tax problem as you will no longer be selling part of your principle private residence.

I don't see a problem if you sell the house separately from the garages and outbuildings or to separate buyers so long as the house is sold last.

Take a look at HS283 for more information on CGT and the main residence.

I hope this helps but let me know if you have any further questions.

TonyTax and 3 other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Very helpful, thank you

Expert:  TonyTax replied 2 years ago.
Thanks and good luck.

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