|
Tax Articles -
Property Taxes
|
|
Written by Tax Insider
|
|
Monday, 03 June 2013 15:12 |
|
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.
|