Tax Free Gains

If an individual wishes to sell part of their garden land for the purposes of development, there may be an exemption to liability for Capital Gains Tax provided the following conditions have been satisfied:

  1. The individual selling the land must not have purchased their property for the sole purpose of making a profit - I.e. it must have been purchased as a residence.
  2. The dwelling house on the land must be an individuals sole or main residence and continues to be so following the sale of the garden land.  Therefore the land must be sold whilst the individual still owns, and resides at the house.
  3. The total area must not exceed half a hectacre (including the house). 
  4. The land to be sold must 'qualify' as garden land - i.e. enclosed land used for cultivating flowers, fruit or vegetables and not used for any agricultural purpose.
  5. Another parcel of land should not have previously been sold by the individual.