I am 'selling' my carpark in my apartment building' garage on a 100year lease to the building developers. As it is my property and not an investment or rental property would I still have to pay income tax? or are there any tax implications here.
Hi there @MadiB
It depends on if you make a capital gain on the sale, in which case you may have to pay capital gains tax. You'd need to work out the portion of your property you're selling. If you make a gain, you might be able to apply exemptions or discounts. Its best to read through the info on our website. If you get stuck let us know.
Hi there @MadiB
It depends on if you make a capital gain on the sale, in which case you may have to pay capital gains tax. You'd need to work out the portion of your property you're selling. If you make a gain, you might be able to apply exemptions or discounts. Its best to read through the info on our website. If you get stuck let us know.
I am selling it for a lump sum payment, it would reduce the value of my property essentially. So it would not be classified as rental income?
Hey @MadiB!
So you will need to work out the value of the garage from the property and CGT will apply on that portion of property.
Despite it being a lease, it still triggers CGT as it's viewed as a sale/disposal.
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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