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Setting the scene
Key points
- TCGA 1992 s 42(2) and the apportionment of the base cost of the property.
- The alternative basis of calculation available under TCGA 1992 s 38(1)(a).
- Statement of Practice D1 explains there is no statutory definition for a separate asset.
- Subsequent disposals of the whole or part of the property must use the same method of base cost calculation.
- Alternative calculations can indicate which of the general or alternative base cost calculations is beneficial.
- Think about future plans and other properties when considering potential capital gains tax liabilities.
Think land and buildings. Think substantial family home with outbuildings grounds fields and woods. Think partial sale to raise cash to invest elsewhere. Think capital gains tax and base cost. Think – that’s easy is it not? Use the part disposal calculations to arrive at the amount of the base cost to deduct from the proceeds....
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