We have recently purchased a pair of semi detached cottages in need of renovation of replacement. We have been advised that it might be possible to obtain planning permission to demolish and rebuild two detached houses on the site. If we obtained planning permission and sold a plot with planning, would we be liable for Capital Gains Tax on the sale? The plot size is likely to be in the region of 0.15-0.2 acre.
If we obtained planning for two detached houses, and built one ourselves, sold it and then built the second one to live in would we be liable for CGT on the sale of the first house?
Or lastly, would we be liable for CGT if we built both houses simultaneously and then sold one / lived in one?