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bigduckontax, Accountant
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If my property is sold as a repossession order, do I need to

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If my property is sold as a repossession order, do I need to pay capital gains tax on the equity?
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question. If it is your sole or main domestic residence, although any gain is liable to Capital Gains Tax (CGT) , Private Residence Relief applies which is at 100% so no CGT arises. I do hope that my reply has been of assistance.
Customer: replied 2 years ago.

it is a farm, which has a mortgage of £420,000 it has been repossesed by the mortgage company as we are in interest arrears. We have a redemption of £191,000 to pay, it is our only residence, but consists of two houses, acres of land and sheds

will the redemption and capital gains tax still apply as we are not selling by choice

Your property is over the premitted area so not all will be entitled to Private Residence Relief. Furthermore the Gov UK web site advises that:

'You are not entitled to relief for land let or used for a business, for example, surrounding farm land.'

Regretably, in your case an element of CGT will apply even though the sale is forced.

I am so sorry to have to rain on your parade.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.

You may well need the assistance of a trusted, local professional in this matter for negotiations with HMRC.