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HELP..New build/self build Capital gains tax question.

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I've built a new build in my garden it's a 3 bed detached valued at £105k

It will be completed in around 4 months.

I'm currently in the other property on the land which is my home which I would like to sell both buy a bigger home and live happily ever after.

Ok so here's where I'm stuck.

 

Do I need to pay tax if I complete the build and sell it?

How much would it be?

And is there some kind of loophole that could maybe help me in not paying tax?

 

I've found this bit of info but I don't quite understand it.

And I'm not sure if the information is from a reliable source.

 

Building In Your Garden

If you own an existing property and want to build your new home in the garden then move from one to the other, it is generally accepted that as long as the first is sold within 12 months of completion of the new home, capital gains tax will not be chargeable on either property. It is possible in some circumstances to negotiate a 12 month extension to this with the Inland Revenue.

 

 

If anyone can help me with any advice it would be great thanks.

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I've built a new build in my garden it's a 3 bed detached valued at £105k

It will be completed in around 4 months.

I'm currently in the other property on the land which is my home which I would like to sell both buy a bigger home and live happily ever after.

Ok so here's where I'm stuck.

 

Do I need to pay tax if I complete the build and sell it?

How much would it be?

And is there some kind of loophole that could maybe help me in not paying tax?

 

I've found this bit of info but I don't quite understand it.

And I'm not sure if the information is from a reliable source.

 

Building In Your Garden

If you own an existing property and want to build your new home in the garden then move from one to the other, it is generally accepted that as long as the first is sold within 12 months of completion of the new home, capital gains tax will not be chargeable on either property. It is possible in some circumstances to negotiate a 12 month extension to this with the Inland Revenue.

 

If anyone can help me with any advice it would be great thanks.

 

My bold=

I interpret it to mean that once the new build is complete you need to move into the new build and sell your old home within 12 months of completing the new build.

I would recommend seeing an accountant....

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Thanks spoke to a accountant and a property solicitor today.

Looks like I have to stay there for round about 6 months.

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A new build 3 bed detached for 105k? Seems remarkably cheap :confused:

 

unless his garden is graves park then you probably need to bring small beds :)

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A new build 3 bed detached for 105k? Seems remarkably cheap :confused:

 

Well we live in Sheffield 5

Near concord sports centre.

It's a capping for the area unfortunately.

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