Selling land for development

Cashing in on high property prices without actually moving has become more and more popular, with some homeowners releasing life changing amounts of money from the garden land that they own.

Where garden land is not needed any more or maintaining the garden has become too difficult, homeowners have the option to stay in their homes, whilst freeing up cash without having to go through the pains of re-mortgaging.

Plus, providing the land you are selling is your garden and it is less than 0.5 hectares, you won’t have any capital gains tax attributed.

 

Sounds too good to be true?

Selling land for development is a fantastic, tax-free way to free up cash in your home, however, there are pitfalls to be aware of.

If you own a garden that is larger than 0.5 hectares, our developers will advise you on whether you will be liable to capital gains tax.

If you are not planning on staying in your house when you have decided to sell your land to a developer, ensure your land is sold before your house, otherwise you could be taxed. Classed as trading, splitting the profits with the developer after the build has completed could mean a hefty income-tax bill. Ensure any building work does not start until after the contracts have been signed and exchanged.

Lastly and probably most importantly, ensure that you are happy with the proposed development before agreeing to complete contracts with the developer.

For more advice on selling your land for development, fill out our quick contact form and we will get back to you as soon as possible.

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2 Willow Place, Rosier Business Park, Coneyhurst Road, Billingshurst, West Sussex, RH14 9DE