Capital gains on inherited house to flat conversion

[Brentford]

We inherited a property in c. 2008 c.£300k. We moved in c. 2012 to date. At time of moving in value c. £400k and after renovations - now c.600k. We hope to create 2 x 3 bed flats - one to occupy and one to rent. The renovation costs are likely to be c £140k and the completed combined flat value c750 k. Wondering what CGT likely to be if sold one, rather than rented? Advice wold be greatly appreciated. Thank you.

[Jerome_Lane]

By "we" I assume you mean you as a husband and wife. If you took each flat at a base cost of £220K (£150k probate and £70k rennovations), the gain is say £155k. Roughly 60% should be protected by PPR relief and if let 2008 to 2012, lettings relief will wipe out the chargeable gain. Otherwise you might be looking at around £11k of CGT. If you'd like detailed computations or to discuss, please contact me.