Capital Gains Tax Liability

zachmach

Hello…wondered if anyone could help shed some light on this situation and the CGT implications….

About 15 years ago I bought a garage around the corner from my house for £15k.

For 13 years, I used the garage for storing my car and unused furniture etc.
I then sold my house only, and then was granted planning permission to convert the garage into a house. The conversion cost £100k. This house is now rented out. It is now worth around £200k.

If I sell the house what would be considered to be the purchase price (used for calculating profit and CGT)?

• Would the purchase price simply be 15 + 100 = £115k? Leaving an approximate profit of 200 – 115 = £85k (excluding expense deductions).
• Or is there some consideration given to the fact that I owned and used the garage for 13 years that would reduce my CGT liability?
• Or is there some consideration given to the fact that the value of the garage would have been significantly greater than £15k once I had been granted planning permission. And I can use this to reduce my CGT liability?

Thanks.

silvercar

I am moving your post to the tax board for a better chance of responses.

Keep_pedalling

The only thing that would reduce your gain is if you used the property as you main residence at some point.