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HMRC internal manual

Capital Gains Manual

Land: destruction of buildings

TCGA92/S24 (3)

TCGA92/S24 deals with disposals where assets are lost or destroyed or become of negligible value. Without a special provision, it would not be possible for land and buildings to come within TCGA92/S24 (1) or (2). This is because, as explained at CG70205, land and the buildings situated on it are a single asset and, except in the most unusual circumstances, land cannot be lost or destroyed. However, TCGA92/S24 (3) allows buildings to be treated as a separate asset from the land on which they stand, for the purposes of Section 24(1) or (2). Detailed instructions on the application of Section 24(3) are at CG15770+.

TCGA92/S23 (6)

Where a capital sum is received in respect of a building that has been irreparably damaged and the compensation is applied in acquiring a replacement on other land relief is available under TCGA92/S23 (6), see CG15742.