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Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I live in NI and currently own my own property (with mortgage)

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I live in NI and currently own my own property (with mortgage) but I also have a site which currently has foundations and sub floor level complete in it. The site has been left for a number of years due to a change in circumstances but I was hoping to sell it with a view to buying a rental property in France. Can you advise me as to how this works with tax etc??
Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.
The "site" once sold (as its not a property) will give rise to a consideration of capital gains if a profit is made between the sale price and the value at the acquisition date pr purchase price.
Also the costs to buy and sell (such as estate agent and legal fees) can be deducted and with capital gains the first £11,100 is exempt.
You do not indicate whether this is how the land was when you acquired it, or whether you had planning permission and this is as far as the build got, but if the build so far is something you have undertaken, then this may also allow a deduction for the costs of the build so far and any planning permission and associated costs.
Let me know if I can be of any further assistance.
Customer: replied 2 years ago.
The site was a piece of land gifted to me by my father I applied for planning permission and had this granted and then commenced the build completing to sub floor level. The build was being completed so I could move closer to and look after my father but he has since died and I now no longer need the site. How much capital gains is this likely to be??
Hi Nicola
Thanks for your response and I am sorry to hear of the loss of your father, may I offer my condolences.
If you wish me to calculate the capital gain for you, then this (as per Just Answer) policy then I will need to ask for an additional fee.
Let me know if you wish me to proceed and I shall then issue the request to you (or we can undertake this over the telephone if you wish (I am in the UK) and can give you my telephone contact details through the request.
I will also need to know
1) The value when the land was gifted
2) The approx sale value now
3) Costs so far to plan and build
4) Your usual annual income each year (as capital gains rates vary)
But if you do not wish to proceed in this way, then I can advise that you will use the value of the land when it was gifted to you as the acquisition price, and this figure you will use to deduct from the sale price.
You then deduct the planning and building costs and any fees for selling - and then what is left over, the first £11,100 is tax free, and the ba***** *****able to capital gains tax.
Capital gains tax are 18% or 28% or a mix of both (depending on your annual income) If you annual income is in excess of £42385 then ALL of the gain will be liable to 28% - if less then the equivalent of unused basic rate band (so between £10,600 and £42385) would be at 18% and any remaining gain at 28%
Let me know how you wish to proceed, but if you do not wish to take this matter any further for you, it would be appreciated if you could rate me for the level of service I have provided with your initial enquiry.
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