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A taxpayer has enquired about determining the value and acquisition date of a property that has been built and extended for the purpose of calculating capital gains. The DGT has ruled that the acquisition date for a building is the date on which the works were completed, provided this can be substantiated, and that improvements or extensions also have their own specific acquisition dates.
This ruling provides clarity for taxpayers calculating capital gains on properties involving construction or extensions, ensuring that the specific dates of completion for different parts of a property are correctly applied to their respective acquisition costs.
The tax team reviews your specific situation.
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