Capital Gains Tax

Partial sale of land

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Hello all, wonder if you could help me.

I am trying to work out the gain on the sale of land owned by a comittee run club. The full property was aquired prior to 1982 and more recently a small amount of land was sold off the property to a residential neighbour. The legal fees for the sale was paid by the buyer and no proffesional valuation was done. The price was merely 'agreed' between the two parties.

I have the proceeds figure for the sale of the land but nothing else. The remianing property has not been valued. The land was sold for circa £9000.

Any advice greatly appreciated.

Thanks

Replies (7)

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RLI
By lionofludesch
27th Dec 2019 11:26

You'll need a valuation at March 1982 and you'll need to exclude the value of the land sold earlier. An apportionment based on area will probably be grand unless one part of the land is significantly more valuable than another.

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By JCresswellTax
27th Dec 2019 12:16

I have a vague recollection of the A over A+B formula from my exams....

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Replying to JCresswellTax:
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By Accountant A
27th Dec 2019 12:36

JCresswellTax wrote:

I have a vague recollection of the A over A+B formula from my exams....

Indeed. Seems no-one thought to find B.

I remember something about small part disposals which may or may not be relevant (assuming it is still part of the tax code).

It's another typically relevant fact free question.

.

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Replying to Accountant A:
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By Katkin
27th Dec 2019 13:31

Yes, ordinarily if I had all of the information I would have applied that formula. Unfortunately this transaction occurred before I took over doing the accounts and advice was not sought from the previous accountant so I am left with incomplete information.
Given the information I have, I don't think I have any other choice but to declare the full proceeds as the chargeable gain.

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Replying to Katkin:
RLI
By lionofludesch
27th Dec 2019 14:06

Katkin wrote:

Yes, ordinarily if I had all of the information I would have applied that formula. Unfortunately this transaction occurred before I took over doing the accounts and advice was not sought from the previous accountant so I am left with incomplete information.
Given the information I have, I don't think I have any other choice but to declare the full proceeds as the chargeable gain.

Well, you could get the committee to ask an estate agent to pop round.

Up to them, rather than you. You need to just advise them of the consequences.

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Replying to Accountant A:
RLI
By lionofludesch
27th Dec 2019 16:37

Accountant A wrote:

JCresswellTax wrote:

I have a vague recollection of the A over A+B formula from my exams....

Indeed. Seems no-one thought to find B.

B is irrelevant unless someone gets that 1982 valuation.

But B might be realistically estimated from the area of A and the area of B.

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By Tax Dragon
02nd Jan 2020 11:36

Have a look at CG71800c and CG71870.

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