My neighbour and I were both in negotiation to buy part of a third neighbour's garden (and keep our individual portions as garden). The land is 45' x 40' for each buyer. The reason for sale is the strange shape, which makes no sense for the seller. The total price was to be £24,000 (i.e. £12,000 per buyer). However, the seller has just pulled out, citing 50% tax as the reason. Is this true, or is the seller making excuses to withdraw from the sale? Do I have any rights as we were only two weeks away from completion?

Arthur Weller replies:
Part of your question is a legal matter, which is not within my remit. However if the land he is selling is 'occupied and enjoyed as the garden or grounds of the residence' (see HMRC’s Capital Gains manual at www.gov.uk/hmrcinternal-manuals/capital-gains-manual/cg64350), he should be entitled to principal private residence relief from capital gains tax (CGT) on its sale (in a similar way to the relief from CGT when one sells a house that one has lived in as a main residence). However, it would be necessary to know all of the facts of the case to be sure.