Purchase Price for CGT after buying partner out

I purchased a house with my partner (not married) in 1993 for £53000. We separated in 2000 and I brought her out for £16000 as the value of the house had risen to £90000. In 2011 I purchased another property and this become my main residence letting the orginal property out. Is the additional £16000 classified as an allowable deduction for the purposes of CGT or is the purchase price now £69000

Hi,
There are two calculations here:
Your 50% using the figures at the time of acquisition.  Add to that 50% of the market value of the property at the time you acquired the other 50%. This will give you the acquisition cost.  
This is deducted from the disposal value, along with your acquisition and disposal costs, such as solicitors fees, estate agents fees etc.  
If there is a gain, you can deduct from this, private residence relief.  
Please have a look at the guidance on private residence relief at:
HS283 Private Residence Relief (2023)
There is also a calculator at:
Tax when you sell property
You have 60 days from the date of completion, to report and pay the capital gains tax.  
You can do this online at:
Report and pay your Capital Gains Tax
Thank you.

Hi there, in response to the above query and answer could I please ask why you would use the market value of the property at the time you acquired the other 50% rather than the actual amount paid? The two parties in the above example were not connected (i.e not married, not relatives etc) so I cannot see under what legislative reference you would use market value - thanks very much.

Hi Alison Chalk,
As not married, the market value rule doesn't apply and it will be what the property was 'sold' for. Please see Capital Gains Manual.
Thank you.

So if the first answer I was given was incorrect can someone from HMRC answer the question I first asked again

Hi,

Apologies for the error.  Please use the amount paid and not the market value.

There are two calculations here:

Your 50% using the figures at the time of acquisition.  Add to that 50% of the acquisition cost for the other 50%. This will give you the acquisition cost.  

This is deducted from the disposal value, along with your acquisition and disposal costs, such as solicitors fees, estate agents fees etc.  

If there is a gain, you can deduct from this, private residence relief.  

Please have a look at the guidance on private residence relief at:

HS283 Private Residence Relief (2023)

There is also a calculator at:

Tax when you sell property

You have 60 days from the date of completion, to report and pay the capital gains tax.  

You can do this online at:

Report and pay your Capital Gains Tax

Thank you.