UK Tax

UK tax questions? Ask a UK tax advisor for answers ASAP

Connect one-on-one with {0} who will answer your question

I am converting a building in my garden into a three-bedroom…

Customer Question

I am converting a building...

I am converting a building in my garden into a three-bedroom bungalow.
Detailed planning permission has been granted and I now need to get
services to the property. To do this I have to get a new address and
separate the new plot in my deeds. Do I have to inform my mortgage
provider? Is there a procedure I should follow?

This building is in the grounds of a house which I lived in for a year
about five years ago, and since then it has been rented out (I bought
the entire site including house and additional building for £170,000).
When the deeds are separated and I have a postal address for the
building, I plan to use it as MY postal address and pay council tax on
the property (technically move in on paper), and will begin the
conversion (at a cost of £30,000-45,000 ) from a large storeroom (its
current classification) to a maisonette. I estimate the work to take
over a year as I will only be working on it part time.

On paper I will have been seen to be living there for over a year. Is
this enough to avoid Capital Gains Tax when I sell? The building is
currently habitable (just) with a bathroom and a kitchen. If I am
liable to pay CGT on it, what else can I do lessen the blow? If I
can't do anything, how do I work out the tax implications?

Submitted: 12 years ago.Category: UK Tax

Show Less

Ask Your Own UK Tax Question

Answered in 1 hour by:

3/4/2011

UK Tax Professional: Sam, Accountant replied 12 years ago

Sam, Accountant

Category: UK Tax

Satisfied Customers: 17,150

Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

Verified

Thanks for your question

I can answer the capital gain position but this UK tax forum has nothing to do with mortgages and what you are obliged to do.

Would you like me to proceed?

Thanks

Sam

Customer reply replied 12 years ago

Yes please

UK Tax Professional: Sam, Accountant replied 12 years ago

Thanks for your response

There will be a full capital gain consideration as its been more than 36 months since you moved away form this residence, so the question of whether private residence relief might apply at face value is no longer a concern.

However you advise that you plan to move into a maisonette whilst you undertake the work building this 3 bed bungalow - but where you do live at this time - and what will become of the property your currently reside in ?

You then advise that you plan to live in the store room which will become a maisonette - is this to be sold also? You also advise that you will live there "on paper" does this mean that you will not move all your personal possessions into this storeroom/maisonette, and where will in fact be your main established address for banks.doctors/dentists.driving licence etc

But can you elaborate on when you plan to convert this storeroom

Please also advise the size of the land in which the house, the 3 bed bungalow and the maisonette stand.

Thanks

Sam

Customer reply replied 12 years ago

Relist: Other
I need to see the answer again

UK Tax Professional: Sam, Accountant replied 12 years ago

This was the answer given

Thanks for your response

But can you elaborate on when you plan to convert this storeroom

Please also advise the size of the land in which the house, the 3 bed bungalow and the maisonette stand.

Thanks

Sam

Sam, Accountant

Category: UK Tax

Satisfied Customers: 17,150

Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

Verified

Sam and 87 other UK Tax Specialists are ready to help you

Ask your own question now

Was this answer helpful?

Yes

How JustAnswer works

Describe your issueThe assistant will guide you

Chat 1:1 with an uk tax professionalLicensed Experts are available 24/7

100% satisfaction guaranteeGet all the answers you need

Related UK Tax Questions

I am considering building/having built three houses in my garden

I am considering building/having built three houses in my garden and need to consider tax implications to help decide on which is most beneficial. Easiest could be just to sell the plots with pp altho… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

I have some questions about calculating business use of home

I have some questions about calculating business use of home return purposes. Can anyone assist please?… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

My question is similar to one already posted; I have a large

My question is similar to one already posted; I have a large house (an old vicarage) with a one bedroom annex in the grounds, which is furnished. It has the same gas and electricity supply and is bund… read more

Joshua

Lawyer

132 satisfied customers

Thank you. So do I put the income from the furnished lettings

Thank you. So do I put the income from the furnished lettings in to that section AND use the rent a room income into the scheme and what is deductable against them?… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

Hi I have 2bed Bunglow and 4bed house and 26acres green belt

Hi I have 2bed Bunglow and 4bed house and 26acres green belt land under one title. I have been living in 2 bed Bunglow and renting 4bed house. Bunglow I have been living in has gained value but not re… read more

Sam Pathak

Chartered Tax Adviser

Master's Degree

468 satisfied customers

I own a property which i bought in Dec 2007 for £175k and lived

I own a property which i bought in Dec 2007 for £175k and lived in it continuously until April 2011. In April 2011 we bought another property and now live in that. We have rented out our original prop… read more

Aston Lawyer

Head of Residential Property

LLB (HONS)

12 satisfied customers

we have lived in our current house since building it in 1984.In

we have lived in our current house since building it in 1984.In 2004 we bought additional garden land adjoining the rear of our original garden amounting to 3/4 of an acre making a total of approximat… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

Hello again. The UK Annual self assesment tax return in due

Hello again. The UK Annual self assesment tax return in due very soon. I work at home. I live in a 2 bedroom house, with one of the bedrooms as my office. I read that I can claim, as a deducible cost,… read more

taxadvisor.uk

Chartered Certified Accountant

Chartered Certified Accountant - FCCA

2,253 satisfied customers

I own a property which i bought 3 years ago for 175k and have

I own a property which i bought 3 years ago for £175k and have lived in it continuously. I intend to buy another property and live in that so I will then be owning 2 properties. Whilst i am living in … read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

We have just taken in an au pair couple (her to help with children;

We have just taken in an au pair couple (her to help with children; him to help outside in garden/keep land under control) and they are living in a self contained small bungalow, constructed as a 'ser… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

This is a UK VAT question in relation to new build property.

This is a UK VAT question in relation to new build property. We are in the process of purchasing a partly built new build property. The history of the property is that the vendor demolished the existi… read more

CDF Tax

Bachelor's Degree

109 satisfied customers

I own a bungalow with a garden too large for me to handle. I

I own a bungalow with a garden too large for me to handle. I am selling part of that garden with planning permission for the construction of a bungalow. Do I have to pay Capital Gains Tax on the land … read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

hi i am a hairdresser who works mobile and also from home.

hi i am a hairdresser who works mobile and also from home. I currently work inside the house in one bedroom but I am looking to get another house and have a separate room in an out building not attach… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

We bought property in 1980 and have lived in it ever since.

We bought property in 1980 and have lived in it ever since. The garden is a third of an acre and in 2007 we built a bungalow in the bottom part which we then proceeded to rent out but the tenant has j… read more

Sam Pathak

Chartered Tax Adviser

Master's Degree

468 satisfied customers

What are the implications regarding Community Tax paid on a

What are the implications regarding Community Tax paid on a three bedroomed house when part of the house is let out as a holiday let. ie two bedrooms I use and the other bedroom is part of the holiday… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

I have used part of my garden to build a bungalow. To avoid

I have used part of my garden to build a bungalow. To avoid capital gains tax it is my intention to live with my family in the new property for a while and rent out the original house during that peri… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

I am about to buy a house which has a building plot at the

I am about to buy a house which has a building plot at the bottom of the rear garden with outline planing permission, I am buying the whole as one lot. What is the tax liability if I sell the house an… read more

Sam

Accountant

Higher Officer HMRC

17,150 satisfied customers

WE have lived in a bungalow for the past 2 years & would like

WE have lived in a bungalow for the past 2 years & would like 2 sell , but We would also like to sell part of the garden/ land which has building permission for a 2 bed bungalow, we are now waiting fo… read more

Mrs-Tax

Chartered Tax Adviser

Bachelor's Degree

59 satisfied customers

Disclaimer: Information in questions answers, and Show Less

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

JustAnswer in the News:

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...
T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.
BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.
JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.
OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.
Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!
AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.
GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Accountant

17,150 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

Accountant

1,483 satisfied customers

FCCA FCMA CGMA ACIS

Clare

Solicitor

149 satisfied customers

25 years exeperience as a high street solcitor

taxadvisor.uk

Chartered Certified Accountant

2,253 satisfied customers

FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)

TaxVince

Accountant

899 satisfied customers

Chartered Accountant >20 years + Qualified IFA

Joshua

Lawyer

132 satisfied customers

LL.B (Hons), Higher Prof. Dip. Law & Practice

Gagan, CPA

Accountant

28 satisfied customers

Expert

< Previous | Next >

Show MoreShow Less