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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have several small plot's of land in UK,a Chinese

Customer Question

Hello
I have several small plot`s of land in UK,a Chinese company are now wanting to purchase them from me,what will be the situation concerning tax i will have to pay on any profit i make.
Regards
Stuart Robson
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. Can you tell me what the plots of land have been used for during your ownership of them please.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Hello

The plots of land have not been in use since i purchased them.

Stuart

Expert:  TonyTax replied 2 years ago.
Thanks.

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

Hi again.

You will pay Capital Gains Tax on any profit you make from the sale of the plots of land you own.

The first £11,100 of gains an individual makes in the current tax year will be tax free.

There are two rates of CGT, 18% and 28%. The rate or combination of rates that you will pay will be dependent on the sum of your income and the net taxable gains in the tax year you make the gains. Take a look at the link below for information on how how much CGT will be payable at each rate, if any:

https://www.gov.uk/capital-gains-tax/work-out-your-capital-gains-tax-rate

If you sold the plots of land over several different tax years, you might have less gains taxable at 28% but that depends on the tax rules being as they are now in the future. The Chinese company may want to buy them all at once , of course.

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

Customer: replied 2 years ago.

Hi Tony

If i roll over the profit into a property will i still pay tax or will that not make any difference at all to the tax i pay,i am a basic rate tax payer

Expert:  TonyTax replied 2 years ago.
It will make no difference as you aren't selling a business asset, you are selling an investment.