How much tax do you pay if you sell land?

Selling land can be a very difficult and complex process. That is why we are here to help to resolve any problems that you may come across on your journey.

There are many things to consider when putting your land on the market. One of the most important is making yourself aware of any tax you will have to pay when you receive your money from the sale, and if that differs depending on the state of your land. For example, the type of land you are selling, if it has planning permission, et cetera…

In accordance with the UK government, property owners have to pay ‘Capital Gains Tax’ if they make a profit (‘gain’) when selling or disposing of property that is not their home. For example:

  • Inherited property
  • Buy-to-let properties
  • Land
  • Business premises

Having to pay the tax, or how much tax you have to pay, is subject to a number of factors. The following are just some conditions which may apply to your situation.

  • Land owners do not usually have to pay capital gains tax on gifts to a husband, wife, civil partner or charity.
  • Tax relief may be possible if you are selling a business asset.
  • If the land was occupied by a dependent relative, the seller may be exempt from paying capital gains tax on their profit.

So, how much from the profit I receive from my sale will I have to pay in capital gains tax?

Capital Gains Tax is paid on the profit when you sell something that has increased in value.

You will therefore only be taxed on the ‘gain’ you have made, not the whole amount you have received.

For example, if you bought your land for £20,000 and sold it at a later date for £30,000, you will only be charged Capital Gains Tax on the £10,000 difference.

A straightforward sale of land, regardless of whether it is for development or not, would normally lead to a Capital Gains Tax charge.

If you are an individual owner/seller, you should expect your gain to be taxed at 10% or 20% when sold, dependent on your tax threshold.

If the seller is a company, their gains on the sale are subject to Corporation Tax, which is currently set at 19%.

If you would like some more bespoke advice regarding your situation or a no-obligation cash offer for your land – speak to us today. At Fast Cash 4 Houses, we are number 1 trusted buyers of land and our team have an incredible amount of experience in the field.

Please take a look at the testimonials on our website if you have not already, it may help to assure you that placing your trust in our team would be the right decision for you.

We can take away your stress by cutting out the middleman and any unnecessary fees.

Contact us for a friendly and informal chat on 01204 294 356 or email [email protected].

We look forward to hearing from you.

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