PTP TR - Formula used for the cost figure on a part disposal of a land and property asset
Article ID
kba-03158
Article Name
PTP TR - Formula used for the cost figure on a part disposal of a land and property asset
Created Date
7th December 2012
Product
Problem
On a capital gains supplementary page, what is the formula for calculating the cost which is used in the disposal calculation for a part disposal of a land and property asset?
Resolution
The original cost is multiplied by A/(A+B) where A is the proceeds and B is the part retained
Original Cost x (A/(A+B)) = Cost used in the disposal calculation
More information may be found here https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg12731
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