Hi all,
I'm new to this forum, and have looked through previous posts to try and find an answer to my question but cannot find anything, so I'm hoping someone will be able to help?
I bought 40 acres of land on 1/4/2006, which comprises of 30 acres of woodland and 10 acres of agricultural land. I paid £51k for the land, and the title is in joint names with my wife.
I am now considering selling the 30 acres of woodland, and keeping the remaining 10 acres of grazing land. The woodland has been valued and is expected to sell for £120k.
I assume, for the purposes of calculating the Capital Gain, that the aquisition cost will be calculated as 75% of the overall purchase price? (as I am only selling 30 out of the 40 acres)
Also, I understand that it is only the gain on the actual land that is taxable, and the value of the standing timber is exempt from CGT. I have not yet had the standing timber valued, but intend to do so. As I have only owned the woodland for 2 years it is safe to assume that the standing timber has not significantly increased in value.
My question is, would it be acceptable to claim the full current value of the standing timber as a CGT-exempt portion of the overall gain, or would I only be able to claim any increase in value since I acquired it?
I appreciate this is quite a tricky question, and would be really grateful for any advice
Thanks
Mark
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