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Capital gains on part disposals

C2.401 Capital gains on part disposals—overview

Disposals of assets include part disposals for the purposes of the charge on capital gains¹.

Where there is a part disposal of an asset, there are special computational rules to ensure that the allowable expenditure deducted in computing the gain represents the cost only of what has been disposed of. This is achieved by apportionment of the cost of the whole asset; see C2.402.

The apportionment requires a valuation of the unsold part of the asset. To avoid unnecessary valuation work, where the part sold is clearly a recognisable fraction of the whole, HMRC accepts that the allowable expenditure may instead be divided in accordance with that fraction².

Apportionment is not required for expenditure which, on the facts, is wholly attributable to what is disposed of, or to what remains undisposed of. The full amount