CGT base cost on selling part of the garden?

CGT base cost on selling part of the garden?

15:26 PM, 1st March 2018, About 6 years ago 4

Text Size

As an accountant I know the Capital Gains rules regarding selling a BLT property that you once lived in.

However, has any one got any advise on the rules in selling part of the garden of a house you once lived in.

How do you calculate the base cost to use in the computation to work out the taxable gain?

Many thanks


Share This Article


Neil Patterson

15:32 PM, 1st March 2018, About 6 years ago

Hi Costas,

Purely guessing here, but find the value of the land now as a percentage of the current total value of the property and then use the same percentage against the original purchase price?

Neil Harvey

19:04 PM, 1st March 2018, About 6 years ago

I am no expert, but from memory, you need to split the purchase price into house and garden value excluding the plot and value of plot without planning, at time of purchse.

Cgt would then be based on sales value of plot compared to initial value. I think you possibly get PPR relief for the period it was your PPR but I am not totally sure.

My best advice is... take the advice of an accountant experienced in this area. I have just had very good legal and valuation advice on another topic and it has proven seriously valuable, and reduced risk for me considerably.

I believe you also need to get "proper" valuations for tax returns from qualified surveyors, not estate agent valuations.

Kate Mellor

22:25 PM, 2nd March 2018, About 6 years ago

I feel sure this will be covered in one of the examples on the HMRC website, No?


9:49 AM, 3rd March 2018, About 6 years ago

I would use:
(House price at purchase / current house price) x agreed sale price of the garden land.
That should give you the equivalent price of the land when you bought it. It's basically the same as Neil Patterson's explanation.

But best check with an accountant to see if there is a standard measure used, but I can't think of anything better.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now