Client sold a former PPR. CGT arises on part of the period as they moved out 2.5 years prior to sale.
The house itself has an extension built in the ownership which qualifies as capital works
At the rear is a building plot with planning obtained during the clients ownership for another dwelling.
The house was sold in 16/17, and the client retains ownership of the plot. The deeds were split only at the point of sale.
In apportioning the purchase price of the house between the land and the house using A/(A+B) for the market values under TCGA 1992, s 42, is it correct that
(i) Ignore the cost of planning to the plot, and add that at the end to the base cost of the land for when that is sold/developed.
(ii) Ignore the cost of the capital works to the house, and add that as an enhancement cost to the house portion in full
(iii) Apportion works such as splitting the garden as an enhancement cost of the original property, prior to applying the A(A+B) apportionment
Did I actually get that right for once? If so it would bethe first time for a while.