"Peter Taylor" wrote in
message ...

"IMM" wrote in message
...

"Peter Taylor" wrote in
message
...

"Peter Crosland" wrote in message
...
What do you think my chances are?

Two chances really: slim and none. Current planning guidance
from
central
government is that there should be no new development outside
the
development limits or in open country. Go and take a look at the
local
plan
for details that is available at your local council offices.


Good advice. And also don't forget Capital Gains Tax. If you
build this
additional house and sell one of them you'll have to pay 40% of
the
proceeds to
IR.

40% maximum, there are ways of reducing that

Please explain

This is all from memory and so the figures are probably wrong - the
principle is OK though:-

For starters you don't pay CGT on the proceeds, you pay CGT on the
profit, so you can deduct the cost of the land, the cost of getting
planning permission, the cost of building the house and the cost of
selling it.

Any assets owned before April 1998 (I think) are subject to indexation
relief which reduces the chargable gain.

After April 1998 you get taper relief which reduces the chargable gain.

You get a CGT allowance of IIRC £7500, which is also lopped off the
chargable gain. If you are married you can double this by giving half to
your spouse before the sale.

CGT is charged at your marginal rate, so unless you are a higher-rate
tax payer you will be charged up to the 40% band at 20% and 40%.

So unless you are an unmarried higher-rate tax payer who already has at
least £7500 capital gains this year, you will pay less than 40% on the
profit.

Even then, you can sell your principal private residence tax free, so
you could build the new house and sell the old one without having to pay
any CGT at all.

Or, build the new house, move in to it for a while and nominate it as
your PPR. Then sell it and move back into your old one (a bit dodgy
this, so you might have to show there was a valid reason why you moved
out of and back into your old house, such as letting it to generate some
income).