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Sam
Sam, Accountant
Category: Tax
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I am in the process of self building a new house on my 6

Resolved Question:

I am in the process of self building a new house on my 6 acre small holding, where I currently live. The plan is to sell my house, value £695k, along with 2 acres of land and use this money to build my new house, which would retain 4 acres of land. Projected value £700k, cost maybe £350k. I will occupy the new house....my old house I have lived in for about 20 years.
As was wondering if there are any capital gains issues and if you have any suggestions regarding mitigation of same.
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

HI

Thanks for your question

If you proceed with the proposal you suggest then there will be no capital gain to pay - as

1) you will dispose of your current main residence with some of the land and then

2) make the new build you home

If however this does not become your main residence OR the sale of the current property is sold after the new build, or the new build sold with it not being your main residence for the whole of its ownership then this could affect the information I have given

Thanks

Sam

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