Tax on selling gardens could hit home owners
Selling off the end of your garden may not continue to offer homeowners a nice little earner anymore. The Government has plans to impose a flat tax on the profits from all new property developments including homeowners wishing to sell their unused garden to developers.
Property experts say that households will have to pay a cost of up to 30 per cent of the increased value of the land in tax when they gain planning permission for the proposed development. This means that even homeowners wanting to build another home in their own backyard will also face the new tax law. The treasury's proposed new tax has been described by them as 'fair, efficient and transparent'. At the moment homeowners usually avoid any levy on their profits other than the 40 per cent capital gains tax due when the land is sold. In some counties such as Buckinghamshire, selling an unwanted garden area is one of the main sources of land for new homes. | 
