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bigduckontax, Accountant
Category: Tax
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I own a house with 0.6 acres of land. I obtained planning

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I own a house with 0.6 acres of land.
I obtained planning permission to build a bungalow in the garden using 0.3 acres of the land.
The house I have lived in for over 40 years.
In this part of U.K. houses are hard to sell.
If when the bungalow is finished and I move into it, is there some time period before I have to pay capital gains tax , as the bungalow will be my prime residence.
Hello I am Keith one of the experts on Just Answer and happy to help you with your question. You have 18 months slack in which to sell without incurring any Capital Gains Tax (CGT) liability. Even HMRC accept that you cannot get rid of a house as quickly as you can say a car. You will be entitled to Private Residence Relief (PRR) which is at 100% of any CGT exposure. Not many people realise that when they sell their sole or min domestic residence CGT applies to the gain because PRR is given automatically. As the plot is within the permitted ares [about an acre] you should have no difficulties. I do hope that I have been able to set your mind at rest on this matter.
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