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It wouldn't be so simple as a 50/50 split though, the two properties are very different in size. As I say, they've only ever been sold together so this would be the first time a value has been attached to them individually.
I'm still unsure as to what the process would be though... what would I need to do at the time of sale regards HMRC?
, I don't normally do a self-assement and am PAYE - the property was rented out by the previous owner.
So, I'll have to inform HMRC that I need to do a self-assesment? And this is a legal requirement in the circumstances? I'm happy to apportion the relative values of the properties, but would this not need to be confirmed independently?
If, , the two properties were bought for £1m and I sold the smaller , then if I said that I thought it was 40% of the total property I'd not be liable . But an independent valuer might value them higher separately than I paid together, and at different percentages; perhaps at 600k and 500k two, so there'd now be a profit of 100k and I'd be liable significant amount of CGT.
From my perspective I'm not planning to make any kind of profit as such, just want to sell a portion of a property I've just bought. The values won't have changed, it just seems down to subjective valuation - I'm just not clear on what my obligations are.