Capital Gains on Split Title

Hello! I have a niche query regarding capital gains tax on a basement that I am in the process of selling. I purchased my flat for £95,000 in 2017, which included the title for the property combined with a title for the basement below. I have since split the title deeds so they are separate as I was interested in developing the basement. , currently the basement is only suitable for storage as it's uninhabitable without a significant amount of investment. I have since accepted offers on my flat for 219,995 and has a separate offer of £39,995 for the basement . However I am unsure if capital gains tax is required on the sale of the basement as I purchased it as one with the flat, as well as it not being a place of residence. I don't see this issue covered in the gov.uk information, any advice would be greatly appreciated. Thank you!

Hi,

The basement is separate from your flat due to each having their own title and as such capital gains will be due on the sale of the basement.

You will therefore need to have a base price for when it was purchased in 2017 in order to work out any gain due.

Thank you.

Thank you for the reply. How do I provide a base value on the basement if it was purchased as combined with the flat? Thank you!

Hi Thomas Keatley

You will need to contact an estate agent to get you a valauation of your property based on similar ones sold at the same time that you bought yours - this would be properties without the basement so you could then ascertain what the cost of the basement would be.

Thank you