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Hi my question is about a property gained by adverse possession: in 2007 myself and 3 others were granted the title to the house we were living in by the Land Registry via the then law of adverse possession. We are currently in the process of selling the house but one my co-owners moved out some years ago so it is no longer his main residence which I believe will make him liable for capital gains. There is no category for gaining a property through adverse possession but am I right in thinking it should be regarded as a "gift"? In which case am I right in thinking his gain would be the difference between the market value of the house when we got it in 2007 and the price we sell it, minus any allowable expenses etc.? (everything divided by 4 as we are sharing all profit 4 ways).

Many thanks

It's specifically NOT treasure trove and it's not a chattel, but I think chattel treatment could be used for a valuation.
https://www.gov.uk/hmrc-internal-manual ... l/cg76550p

http://www.taxationweb.co.uk/forum/post182880.html

There are no provisions for treating the acquisition at market value. The normal rues will apply:

http://www.legislation.gov.uk/ukpga/199 ... 38/enacted

The costs of acquiring legal title will be allowed.