LAND SOLD 2003/04
Net Sale Proceeds £217,000 less cost £30,000 less improvement cost £5,000 less indexation (inflation) allowance from January 1995 to March 1998 £3,042 less taper relief for a non-business asset 7 years £44,740 less annual CGT exemption £7,900 leaves a net taxable gain of £126,318.
Indexation on £30,000 (160.80 - 146.00 / 146.00 = 10.14%. Factors here
. Indexation will be less if purchase was not in January 1995.
Taper relief for seven years is 25% discount off net gain after indexation of £178,958.
In 2003/04, gains were added to income to determine the tax rate as you can see here
. The worst case scenario is that CGT is payable at 40% where the taxable income for that year was £30,500 or more.
CURRENT PIECE OF LAND
If you sold the land in 2015/16 for £167,000, the gain will be £104,000 (£167,000 - £60,000 - £3,000). The first £11,100 will be tax free due to the annual CGT exemption so the net taxable gain will be £92,900.
As the land appears to be a business asset and assuming you own it personally as opposed to a company owning it, you may qualify for entrepreneurs' relief. You can read about that here
. If you do, the CGT rate will be 10%. If you don't, the CGT rate will be 18%, 28% or a combination of the two rates depending on the level of personal income in the tax year the land is disposed of.
If the assets were owned by two individuals equally, you need to divide the gains in two and you will each be due your own CGT annual exemption and range of tax bands which may be different.
I hope this helps but let me know if you have any further questions.