Capital gains on holiday let

Our residential house has a small annex attached as part of the property. We have made significant improvements to the property and have rented it out as a holiday letting over the last year. Will the annex part of the property be liable to capital gains tax when we finally sell the whole property?

Hi AlexF Firman,

Yes, you will therefore need to obtain valuations for both the annexe and the whole house at the time the renovation was completed and also at the time of the sale.

Thank you.