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Readers' forum: Buying the plot

15 January 2019
Issue: 4679 / Categories: Forum & Feedback

Tax on purchase and sale of building plots.

I am buying a one-third acre plot with planning permission for two properties. I will sell my home to make the purchase and start building. The first house will be my main residence. I want to divide the plot into two and sell the second as soon as possible to avoid needing a mortgage which I would otherwise require to finish building the first property.

I expect to rent accommodation until March when I will move into a caravan on the land. How long would I need to live there in the caravan for the other half of the garden to be classified as my primary residence when I sell it?

If I continued to live in a rented property but the double plot was my only owned...

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