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Splitting property for sale inside LLP

Valuation on part-disposal

Hi

I have a mixed use property (part restaurant, part holiday-let) and want to dispose of only part of it. Assume the book (cost plus cap-ex) value is £1m for the whole, say - but the property has appreciated and each part is worth 800k now, giving a total property value at £1.6m

Am I required to revalue both parts and crystallise a capital gain on sale of one part, or can I dispose of 800k leaving a book value of 200k for the residual part (with the embedded gain un-crystallised)?

Thanks in advance for your help!

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03rd Nov 2018 13:15

Are you asking a tax question or an accounting question? If tax, why would you not apply the normal part-disposal rules (A/(A+B))?

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By DJKL
04th Nov 2018 12:33

Proceeds £800k

Cost £500k

Gain £300k

Carry cost remainder £500k

A/(A+B)

800/ (800+800)x £1m=£500k

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