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The Masked Tulip

What Taxes Do You Pay On Land With No Planning Permission?

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You pay nothing, no capital gains either. In fact if the land is big enough the EU pay you a single 'farm' payment just to keep it empty.

Just wondering whether it is worth taking a punt on an acre or two of undeveloped no PP land bearing in mind all the talk now now housing shortages. Perhaps PP will be changed in the coming years?

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Just wondering whether it is worth taking a punt on an acre or two of undeveloped no PP land bearing in mind all the talk now now housing shortages. Perhaps PP will be changed in the coming years?

If you are just looking for a gamble, then why not. As you and I know at some point in the next decade millions of houses will have to be built on green field areas - there is no way around it unless there is a big way/plague that kills millions.

We toyed with the idea of buying some land as I would like an orchard, the o/h keeps chickens and we like the countryside. The biggest problem problem for us int he UK is we don't have a spare million to buy a house with 4/5 acres. Recent thoughts have been around buying some farm land for us to undertake our smallholding whilst renting somewhere inappropriate.

I would rather put my money into some land I can enjoy than a pokey house with no land.

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If you are just looking for a gamble, then why not. As you and I know at some point in the next decade millions of houses will have to be built on green field areas - there is no way around it unless there is a big way/plague that kills millions.

We toyed with the idea of buying some land as I would like an orchard, the o/h keeps chickens and we like the countryside. The biggest problem problem for us int he UK is we don't have a spare million to buy a house with 4/5 acres. Recent thoughts have been around buying some farm land for us to undertake our smallholding whilst renting somewhere inappropriate.

I would rather put my money into some land I can enjoy than a pokey house with no land.

Bees with myself.

City AM had an article last week pointing out the difference in land prices in the UK between land with PP and land without, went on to say that France will built 3 times as many houses as the UK this year and that the UK will have to change its plqnning laws.

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No ongoing taxes to pay (council tax) - except income tax if you generate any revenue from it.

You will get stung for CGT.

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No ongoing taxes to pay (council tax) - except income tax if you generate any revenue from it.

You will get stung for CGT.

What about woodland? ;)

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What about woodland? ;)

Ah yes. Woodland is a good wheeze. I'd forgotten about that. IIRC there are various IHT potential dodges and you don't pay income tax on income derived from selling wood. And there may be some residual CGT larks as well.

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Ah yes. Woodland is a good wheeze. I'd forgotten about that. IIRC there are various IHT potential dodges and you don't pay income tax on income derived from selling wood. And there may be some residual CGT larks as well.

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Some land in the fens have to pay 'drainage' fee's to keep the pumping stations running..

Which is understandable given that, in reality, you own an acre of seabed!

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Which is understandable given that, in reality, you own an acre of seabed!

On the other hand Great Yarmouth didn't exist in Roman Times and Breydon Water was North Sea.

I think buying a field without PP is a good speculative punt, though it would depend on the field of course

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Considered the same myself. Trouble is - around here - even the land without PP comes with daft restrictions like paying 40% of the increase in value due to granting of PP for the next 40 years to the previous owner. Plus it's still ridiculously priced ie about £10K+/acre for land barely fit to graze sheep on.

The land with planning permission is even worse. It's cheaper to buy an existing house with land than a piece of land with PP then build an house on it.

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Considered the same myself. Trouble is - around here - even the land without PP comes with daft restrictions like paying 40% of the increase in value due to granting of PP for the next 40 years to the previous owner. Plus it's still ridiculously priced ie about £10K+/acre for land barely fit to graze sheep on.

The land with planning permission is even worse. It's cheaper to buy an existing house with land than a piece of land with PP then build an house on it.

I fear it is the same in my part of the world. Lots of farmers just waiting for PP rules to be changed but putting clauses like you mention in if they sell half an acre or so now.

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I have also been looking into this.

But round here its more like £20k per acre. That means a 5 acre field is going to set me back £100k :ph34r:

I'd love to do it though, set up a small holding type thing with an apiary, orchards, and a woodland garden. Plus land is virtually the only thing that actually has an intrinsic value.

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