Land disposal

[jasonpaul40]

Company A purchases a piece of land and building in 1976. In 1989 it acquires a further piece of land and building situated adjacent to first purchase. Land is always fenced into two separate pieces of land. When company A sells land 1 is it treated as a part disposal or can treat as two assets? Many thanks

[pawncob]

Are they both under one Land Registry Certificate? If so they could be classed as two distinct assets.

[Incredulum]

I think if it had been acquired pre-1982 my answer might be different as your March 82 valuation might depend on the size of the (combined) piece of land.

As it is, particularly if they've always been separately registered at the LR, proabbly not a part disposal.

[maths]

Given the facts I would suggest the disposal is not a part disposal for CGT.

Perhaps some support is obtained from the VoA Manual:

"5.44 Unit of Valuation
Where there is a part disposal of an area of land which comprises a number of acquisitions, the rules for part disposals are applied to the smallest separate acquisition or number of acquisitions, which include the part disposed of".