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HMRC internal manual

Capital Gains Manual

Gains: disposal of found objects: not treasure: example

A has owned land since 1974. On 1 June 2009 he entered into an agreement with B, similar to the one at CG77603, under which B agreed to search his land for objects in exchange for 50% of anything found. (This is not, of course, the only form of agreement that A and B might enter into. Other contracts may have different tax consequences.) In August 2009 B found a Saxon cross a foot below the surface.

In December 2009 the Coroners Court determined that the cross was not treasure and so it was sold at auction by A and B in July 2010 for £200,000. A and B shared the proceeds equally.

The value of the cross at 31 March 1982 is agreed at £20,000. The value of a half share at 1 June 2009 is agreed at £90,000.

The gains accruing to A are as follows: - 

  1. Disposal of a half share at 1 June 2009
  Disposal Proceeds 90,000      
LESS Cost 20,000 x 90,000 10,000
        90,000 + 90,000  
CHARGEABLE GAIN 80,000        


  1. Disposal of a half share July 2010


  Disposal Proceeds 100,000
LESS Cost 10,000


The gain accruing to B is


  Disposal Proceeds July 2010 100,000
LESS Cost (June 2009) 90,000