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Valuing Land
03/06/2013, by Tax Insider, Tax Articles - Property Taxation
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A CGT charge may arise on the disposal of land. In order to calculate the capital gain or loss arising, a valuation is required where:
 
•the land was owned at 31 March 1982 (in order to determine the ‘base cost’ of the property);
•the disposal was a bargain not at ‘arm’s length’;
•the disposal was to a connected person; 
•there has already been a part disposal of some of the land and the ‘alternative basis’ of calculation has not been used.
 
Calculation
•‘Alternative’ basis – the land disposed is treated as a separate asset – HMRC will accept any ‘reasonable and fair’ method of apportionment.
•Valuation – professional advice is required. 
 

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