Selling land tax implications

[s2t]

We are buying land from a farmer to build our main residence on. We have an opportunity to purchase additional land from the farmer though not adjacent to the existing plot. I think I may be able to get outline planning permission on this additional land.
If I were to subsequently sell this extra piece of land with outline planning permission would I be liable for CGT as the land value will increase say 10 times. Before speaking to my solicitor and accountant thought I would ask here as I am not sure what the rules are if the land is not adjacent/part of the main area albeit in close vicinity

[z4chris99]

plenty of ways round it

[anonymous-user]

z4chris99 said:

plenty of ways round it

Go on then... Not sure how you can say that, given the the limited detail the OP has supplied.

Anyway... based on the basic outline you've given then without some clever scheme then you are likely to be liable for CGT, but if you can really buy an asset which you can increase in value by 10 times then i'd thought that paying the CGT would have been a relatively small price to pay. There are of course personal allowances to use up before you pay CGT, plus if you're married and the asset is joint owned then you can use both your allowances, so even if you do have to pay it the damage may not be as bad as you fear.

[Timmy35]

Yep you'll be liable for CGT. It's a pain in the bum but there we go, if you're married you and your wife both get approx £10k allowance, and if you're a 20% tax payer you'll pay 18% tax upto the 40% threshold, thereafter it's 28%. The gain is of course calculated on your profit after whatever the land cost you.

[Eric Mc]

Other allowable deductions are legal fees, stamp duties, agency fees, search fees, advertising costs etc that were part of the purchasing and selling process.