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i received a cheque for £12,000. The land, including the house, is alot less than 1/2 a hectare.
Hi again.As you have disposed of part of your property, the proportion of the cost of the property that is allocated to the part sold is based on the A over A + B formula where A is the part disposal proceeds and B is the value of what is still owned. So, if you divide £12,000 by £262,000 and multiply the result by £208,000, you get the cost of the part of the garden sold which is £9,527. The gain is therfore, £2,473.As the property was let for 77 months out of a total ownership period to date of 141 months to December 2014, a proportion of the gain is not exempt from CGT. This will be £1,351 (£2,473 / 141 x 77). The exempt gain will be £1,122 (£2,473 / 141 x 64). I have a feeling that letting relief which would be £1,122 in this case is only calculated on a final disposal but I will check that and get back to you. Either way, you will have no CGT to pay unless your total gains exceed the annual CGT exemption of £11,000.I hope this helps but let me know if you have any further questions.