Allowable deductions for CGT - 2 properties on 1 title deed and 1 property let out

Trying to understand what allowable deductions can be made for a property that has been let out. A house and bungalow were bought at the same time on the same title deeds in 2000, The house has always been our private residence and the bungalow has been let out for most of trhe time, i.e. some gaps when changing tenants. The title deeds are jointly owned by my wife and I. As the bungalow has been let out we assume there is a CGT liability however we're trying to understand how to determine allowable deductions for CGT for the following: - How to value the bungalow. Do we need a retrospective valuation for just the bungalow when both the house and bungalow were bought together. Would a qualified Chartered Surveyor, accredited by the RICS as a Registered Valuer be appropriate, i.e. Red Book valuation. - How should costs be determined, i.e. Costs of buying and selling just the bungalow, including stamp duty, solicitor fees and estate agent fees, as both the house and bungalow were bought at the same time on one title deed, i.e. the purchase price was for both properties. - The house and bungalow are in close promity and have seperate council tax bills but share several services, i.e. shared access via a single driveway, shared septic tank and shared boiler via district heating. Does this affect the valuation on the bungalow or CGT liabilities.

Hi,

Yes, you will need a restrospective value applied so that you know what the purchase price was. Tthis can be done by a chartered surveyor or estate agent.

As the initial costs were for 2 properties then these should be halved and then both you and your spouse would split the revised costs 50/50. The valuer will take into account the shared utility. You can see guidance on allowable expenses here:

CG15250 - Expenditure: incidental costs of acquisition and disposal

Thank you.