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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Land: part-disposals: special practice: general

The special practice can only apply where the subject of the part-disposal is the entire interest in what is recognisable as a separate asset. An example would be the disposal of a single field, or even part of a field, out of a farm. This practice was published on 22 April 1971 and is now statement of practice D1. Under the special practice, the expenditure allowable under TCGA92/S38 (1)(a), see CG15160+, is ascertained by apportioning the expenditure incurred when the asset was acquired (but subject to the rules in CG71852-71856). That is, the amount of expenditure attributable to the part of the land disposed of is to be arrived at by a just and reasonable apportionment of the total cost of the land, along the lines of TCGA92/S52 (4), see CG14771.