My Second Article in the Daily Express

It is amazing what can come from some twitter banter. As my regular regular readers know I am trying to build up my own client base at the moment. I use Twitter as a marketing tool and when I asked Annie Shaw (@cashquestions) to retweet my blog she responded with some sarcastic remark. We had some exchanges on twitter that eventually led to emails and now she has helped get my second article in the Daily Express. I will forever be grateful to Annie and it just goes to show keep trying and you will succeed.

I thought this week I would share the subject of the article in case you missed Wednesday’s edition of the Express.

Q I am selling part of my garden so a bungalow can be built. The land is worth about £150,000. What tax would apply to the sale?

A Mitch Young from LJD Chartered Accountants in Elstree, Hertfordshire, says: “You may not have to pay tax on the sale but this will depend on the size of the land.

“The capital gains tax exemption for a main residence includes grounds not exceeding half a hectare (about 1.25 acres) or a larger area which is appropriate to the size and character of the house.

“If you sell some of the land, perhaps for development, the sale may be covered by the exemption if the land was used as part of the garden and grounds and is sold either before the sale of the house or at the same time.

“If your garden and grounds exceed half a hectare you are unlikely to be entitled to relief for all of it. The area for which you are entitled to relief is called the permitted area, which is that part required for the reasonable enjoyment of your dwelling as a home. The size and character of your dwelling house is taken into account.

“If the portion of the land does not qualify for the exemption then you are likely to be subject to capital gains tax on the gain, at either 18 per cent or 28 per cent, depending on your total income for the tax year.”

I am hoping for more opportunities with the Express and I am working on pitching for a regular tax tips column. Watch this space.

In the meantime I would love to speak with any football agents out there. Do you have any contacts you could introduce me to?

If you have any questions or require tax assistance please get in touch mitch@ljd.uk.com

Thank you for reading, have a great weekend

Mitch the Tax Man