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HMRC internal manual

Capital Gains Manual

Land: small part-disposals: general


Where part of a holding of land is disposed of, the taxpayer can elect that the transfer should not be treated as a disposal for Capital Gains Tax purposes provided that the following conditions are satisfied.

  • the consideration does not exceed 20% of the market value of the entire holding, see CG71875, at the time of the transfer; and
  • the consideration does not exceed £20,000; and
  • the total consideration for all transfers of land made by the taxpayer in the year in question does not exceed £20,000.

Where the above conditions are satisfied, the consideration is deducted from the allowable expenditure on the holding in computing the gain arising on any later disposal, or part-disposal. Where the above conditions are satisfied, but the allowable expenditure is less than the consideration received, see CG71872.

The time limit within which an election must be made is explained at CG71877.