Many years ago I bought a large house with three acres of land. My wife and I divorced, and she put her half share in trust for the children. I’m now selling up, and am told that there will be capital gains tax to pay on all the land other than that immediately surrounding the house. Is this correct?
Generally speaking there is no capital gains tax payable on your main place of residence. However second homes and holiday homes are liable to tax. Since half of your property is in trust that half will not be regarded as a main place of residence, unless it is occupied by a beneficiary of the trust. The second problem is that only one acre of land attached to a house is tax exempt, although this is not a hard-and-fast rule. You need detailed advice.