Sian Plant

The house has already been purchased: 2 questions specifically relate to events that have already happened. I have read the guidance and cannot find answers. 2. How can the purchase [and sale] values be established? 3. Am I able to claim any capital allowances in respect of the purchase of the annex building (as distinct from its contents) to offset any future CGT liability? And if I were to sell tomorrow are you still unable to offer guidance as that relates to future events? A lazy and unhelpful response.

My house has an annex that I rent out under the FHL regime. The annex is a converted garage attached to the house: I would estimate it at about 10% or less of the total floor space. The house is the sole residence of me and my husband. We purchased the property in Nov 2019; the previous owners had also let out the annex but at the time omitted to tell us that it was subject to business rates. I understand that this means that should we dispose of the property in future we may be subject to capital gains tax. Please can you confirm: 1. Would sale of the house give rise to a capital gains tax liability? 2. How can the purchase and sale values be established? 3. Am I able to claim any capital allowances in respect of the purchase of the annex building (as distinct from its contents) to offset any future CGT liability? 4. If we cease the FHL business is it correct that we can apportion CGT libaility on a time basis eg lived here 10 years, operated FHL 5 years, liability is apportioned? But is the gain value established when the trade ceased or when the house is sold?