Cgt on self contained annexe

Will the sale be subject to CGT when the property is sold?

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A husband and wife owned a property, their home,  with an adjoining self-contained annexe on a site of approximately two acres. The annexe was let for a number of years as a holiday let, it was not let for the last six months of ownership. The owner's divorced and sold the whole property. Can readers advise whether any cgt will be due, all replies welcome.

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RLI
By lionofludesch
19th Dec 2018 15:14

Dunno.

Give us some numbers.

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Replying to lionofludesch:
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By goldenfawn
20th Dec 2018 13:39

I don't have them all as yet, although I expect them to be frightening. The property sold for £915,000.

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paddle steamer
By DJKL
19th Dec 2018 15:24

All sorts of questions re dates, amounts, timing of sale relative to the divorce etc.

On a hunch, and presuming the UK, I suspect there is a good chance yes, there is a chargeable gain, the critical point then being what of it cannot be relieved.

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By Matrix
19th Dec 2018 15:25

Yes I would expect so. You will need to calculate the gain for the house and the annex separately. Look at the PPR rules for maximum permitted area and the FHL rules to see if entrepreneurs relief could potentially apply.

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RLI
By lionofludesch
19th Dec 2018 15:32

If the question is - "is it exempt as a PPR? - the answer's "no", imho.

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