Land Registry Title Split

[April71]

Hello All,

Quick question I have pp for demolishment and rebuild of existing house, I don't live there so no PPR and two brand new builds, before i get into the glacially slow nightmare that is the uk land registry, anyone know if there would be any tax advantages to creating a brand new title for the land where the new builds are going to be? thanks

 

[Mottie]

I don’t think so. My mate is in the process of getting PP for a separate house to be built in his large garden - it has its own separate entrance. When he gets it he plans to sell the house with the building plot in one lump so there will be no capital gains tax to pay as it’s his own home he is selling. The other alternative was to split the house and land, sell the house and sell the building plot separately. I did something similar years ago when we had our house and workshop split up, sold the house but retained the workshop. In that case, there will be capital gains to be paid. It sounds like you come under the second scenario so probably no tax advantage. when I sold my house about 35 years ago, the conveyancing solicitor did it at the time of sale - it was relatively cheap and quick.