Building Two houses

[Big Jimbo]

So, it looks like i am going to get permission to build Two houses on land that my wife and i own.

It currently has an old bungalow that we are intending to knock down. Once planning is obtained we will look to split the land into two parcels with the land registry and put One parcel of land in my name, and One in her name. It is the only residential property that we own between us, and has no borrowing against it.

The intention is to then build a house on my plot of land. I will do it as a self build, and claim exemption from CIL, and claim back VAT spent.

Once it is finished, i wont be able to afford to keep it, so my intension is to sell it. I appreciate that i will have to pay the CIL if i sell it within 3 years.

If i make a profit, which i should as i will already own the land. would anybody know if i would have to pay any Tax ? My thoughts are that i would not be liable for any tax, as it would be my only residence.

I know that i will have to take some proper tax advice, but wondered if anybody had any idea ?

Thanks in advance for any help offered.

[IanR]

28 minutes ago, Big Jimbo said:

If i make a profit, which i should as i will already own the land. would anybody know if i would have to pay any Tax ?

 

Married couples "only" get Private Residence Relief on CGT, on one property (unless you are Angela Rayner). So, depends what you plan to do with the second new-build in your wife's name.

If you can apply PRR to the property in your name, any profit you make should be tax free, until Labour change the rules.

Edited 7 hours ago by IanR

[Big Jimbo]

Thanks @IanR. If my wife then built a house on her land after i finished mine and sold it, she should be ok ?

[IanR]

9 minutes ago, Big Jimbo said:

If my wife then built a house on her land after i finished mine and sold it, she should be ok ?

 

Yep, should be. You'd be wise to collect evidence of it being your principle residence, ie. registered for Bank, NHS, Council Tax, Utilities at the appropriate address, at the correct times.

[nod]

7 hours ago, Big Jimbo said:

So, it looks like i am going to get permission to build Two houses on land that my wife and i own.

It currently has an old bungalow that we are intending to knock down. Once planning is obtained we will look to split the land into two parcels with the land registry and put One parcel of land in my name, and One in her name. It is the only residential property that we own between us, and has no borrowing against it.

The intention is to then build a house on my plot of land. I will do it as a self build, and claim exemption from CIL, and claim back VAT spent.

Once it is finished, i wont be able to afford to keep it, so my intension is to sell it. I appreciate that i will have to pay the CIL if i sell it within 3 years.

If i make a profit, which i should as i will already own the land. would anybody know if i would have to pay any Tax ? My thoughts are that i would not be liable for any tax, as it would be my only residence.

I know that i will have to take some proper tax advice, but wondered if anybody had any idea ?

Thanks in advance for any help offered.

You won’t get the Cil on either 

We wanted to build both houses that we have permission for and received a bill from the cil for 60k Payable within 30 days of breaking ground 

I became a developer once the PP came through

Weve done one and had the bill rescinded

 

I tried the wifey thing also 😁