Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 11 Aug 2023 09:35:07 GMT by Cam
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.
Posted Wed, 23 Aug 2023 05:52:19 GMT by HMRC Admin 25
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. 
Posted Wed, 23 Aug 2023 11:10:38 GMT by Cam
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
Posted Wed, 30 Aug 2023 10:38:49 GMT by HMRC Admin 20
Hi Cam,

Yes it is correct.

Thank you.
Posted Wed, 30 Aug 2023 10:44:10 GMT by Cam
Thank you that clears it up. One last thing, can I still offset a portion of the original purchase price. Many thanks
Posted Mon, 04 Sep 2023 15:30:20 GMT by HMRC Admin 32

Yes, as long as you have the correct split.

Thank you.

You must be signed in to post in this forum.