Capital Gains Tax on woodland sale

[Catweazle]

I sold my woods in Kent when I moved to Wales early last year. I bought the woods in 2006 and made a substantial profit on the sale (bought for £50k sold for £130k). I understand that CGT is payable on the value of the land but not on the value of the timber growing on it, my problem is that I don't know how to value the land and timber separately in a way that is acceptable to HMRC. Timber prices rose considerably in the period, in line with the price of oil and gas.

Can anyone give me a clue how to proceed ? Or, perhaps, the name of a competent accountant who has experience in this field ?

Any ideas appreciated.

Catweazle

[Jackdaw]

Not sure of the answer to your question, but I thought you had to pay CGT within the year of sale ?. Nice profit though, where in Kent may I ask ?.
Rgds J.

[Catweazle]

Thanks Mr Paws, that helps.

I'm looking for an accountant who has experience of this, my (ex) accountant is an idiot who can't manage to file a return on time let alone understand woodland values.

[Catweazle]

The capital gains is £80,000, however you will have up to 6 years capital gains allowance to offset against this, which is currently at about £10,000 per year. (Not sure what is was in 2006). If for the sake of argument you had a total of £50,000 allowances in the six years, you'd only be liable for tax on the gain above your allowances, Eg 18% of the £30,000 taxable increase, or about £5400.

I can't seem to find any reference to being allowed to use previous years capital gains allowances, do you have a link to that information ?

Cheers,

Catweazle.