I own a freehold property which is my primary residence which has a right of way across my neighbours property which is named on my deeds. I paid £495k in 2007 for the property which included this right of way. It is now valued at £850k. The land is less than 0.2 of an acre. My neighbour has offered to pay me £30k to remove this benefit. I am proceeding with the giving up of the right of way now and will follow with the of my house an unrelated buyer a few months later.
The questions are:
- Is the removal of this benefit exempt from the CGT under private residence relief as the value of the property is lower as it will no longer include the benefit?
- If not, how would CGT be calculated? I'd argue that the value of this benefit was not far off £30k back in 2007 as it's value isn't a function of the property value. However, is there a standard formula one applies to calculate this?