Furnished holiday let sale

I purchased our main home 2004 with 2 titles. In 2011 we built a house on the piece of land with its own title which has been a FHL until now when we sold it. Until we built, this piece of land was not separated from the main property. My question is can we apportion part of the original purchase price to offset against CGT on the sale of the FHL The original purchase was for the two titles combined. Many thanks in advance.

Hi Cam
This would be dealt with as a partial Disposal of original asset.
For the calculation, if you bought two titles of land then it may be clear what was paid for each parcel for working out the purchase cost, but if not then the guidance below also covers scenarios where it is one purchase then split into smaller parcels.
CG71800 - Land: part-disposals: general rules
Thank you. 
 

Thank you for taking the time to reply. That’s all a bit much for me to get to grips with. So basically as opposed to offsetting the cost of the part cost of the original purchase, I am liable for CGT on the sale of the land the house was built on is that correct? Many thanks

Hi Cam,

Yes it is correct.

Thank you.

Thank you that clears it up. One last thing, can I still offset a portion of the original purchase price. Many thanks

Hi,

Yes, as long as you have the correct split.

Thank you.