Here's one for the property experts:
Building bought in 2010 for £300,000, trade below with residence treated as PPR above. Let's say 50/50 split in terms of floor area.
Planning permission has now been granted to convert the first floor, add a second floor, extend to either side whilst retaining the commercial use of the existing ground floor area.
Let's assume all the flats will be sold immediately upon completion, and that CGT is applicable to the sale proceeds.
My question is this: when apportioning the PPR relief, what valuation do we take as being the valuation applicable to determine how much CGT there is to pay? Is it the valuation prior to any planning permission being granted, or the valuation including the planning permission but before commencement of the building works, or some other value entirely?
References to HMRC manuals, base legislation, etc can be made.
Many thanks.
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