Selling site with planning permission. what tax do we have to pay?

CamperMan

we are selling our site with planning permission. what tax do we have to pay if we sell it?

Victor

The vendor would pay Capital Gains Tax, the purchaser would pay Stamp Duty.

Things have changed recently, so I'm not sure hwat the current rates are.

The_Conductor

It also depends on how you came to own the site- the obvious tax might be CGT (which in turn you could offset against other assets you may be selling at below what you originally paid for them).

Without knowing all the details (and please don't tell us), its not possible to really give you advice on this. You need to talk to a good accountant.

CamperMan

we bought the site out of our savings, and we will be selling it on without any profit.. hope this helps

Victor

Ooops, I didn't spot the planning permission bit. You need to talk to you solicitor / accountant to see if VAT is applicable instead of / in addition to Stamp Duty. VAT is applied when a property has been improved, e.g. if you built a house on it. I'm not sure if PP is enough to make it considered "improved".

If you don't make a profit (make sure you account for all your costs), then you wouldn't pay CGT, but the transaction taxes would still apply. if you make a loss, you may be able to offset the loss against future similar gains.

EKRIUQ

Planing permission is worthless on a residential site if selling (except that you have the knowledge that planning can be got there) as the planning permission goes with the person who got the permission not the land. Hence why sites are sold subject to planning permission.