Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum : Green fingers

20 March 2018
Issue: 4640 / Categories: Forum & Feedback

Tax treatment of disposal of garden with planning permission.

I have received conflicting professional advice and should be grateful if readers could clarify the position for me. My question is whether any planning uplift in the value of the garden of a main home is tax free. One adviser says it is trading and subject to income tax while another says it is tax free. Additional information is as follows although the numbers are provided by way of example:

  • The house has been my only or main residence for more than ten years and continues to be so.
  • Let’s assume the house with garden is worth £100 000.
  • The garden without planning permission is worth £20 000.
  • The garden with planning permission for a bungalow and single-dwelling covenant lifted is worth £50 000.

Tax adviser A says the £50 000 from selling...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon