OUR HOME IS 2 ADJOINING SEMI-DETACHED HOUSES - IS CGT PAYABLE ON SALE OF ONE??

WTKB

20 years ago we purchased a semi-detached house. 5 years later, with a growing family, we purchased the adjoining semi and gained permission to create  2 openings, on the ground and stairway, to allow free access.
Since then for 15 years we have lived in both houses combined as our family home making full use of all rooms.
A license was issued by the governing authority stating that within 25 years we must return the houses to their original state. We have now complied with this requirement and are selling the second house purchased. No other changes were made internally, each house retained all utilities and council tax was paid on both. Each has a Land Registry title.
We have conflicting financial advice on whether CGT is payable on the part sale.
One financial advisor says clearly this is our family home, and CGT is not payable on a part sale.
Another is more doubtful.
We would appreciate advice from anyone with more knowledge or a similar experience.

mybestattempt

After looking at the HMRC guidance in the Capital Gains Tax Manual, I am inclined to the view that gain on the sale of the adjoining semi would attract private residence relief. 

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64305

Although the example used in that guidance is two flats in the same block I think the same principles would apply here.

The property is obviously in the same block, contiguous (with the house you continue to live in) and was from what you say simply occupied by you and your family as part of the family home.

SiliconChip

Friends did something similar, although in their cases the two houses were adjacent but not adjoining, they constructed a join between the two in order to live in both. When they decided to sell one they moved into the house that they'd bought later, removed the joining structure, and sold the original house. As they are pretty clued up on CGT, having bought, sold and let properties for many years, I would be confident that doing it this way meant there was no CGT to pay.

WTKB

Thanks mybestattempt and siliconChip that's very encouraging.