Question:
I bought a house four years ago for £120,000 and two years later I built an adjoining two bedroom house on the same plot for £62,000. The new property is now worth £180,000. What would be the amount of CGT be if I sold the property?
Arthur Weller replies:
Your capital gain now is simply £180,000 less £62,000 plus the value of the bare land on which the house was built
