# Part disposal and PTC: disposal costs in relation to Chargeable Gains

Registered Posts: 469
Hi there

this is on the PTC
I have a piece of land that I bought for £41500

I sell 4 acres of it which leaves 6
I sell it for 38000, and there were £3000 of costs in the sale. the remainder is valued at £48000

I know the formula is orginal costs X Proceeds/Proceeds+market value of part remaining

In this case is the proceeds in the calculation 38000 less £3000 or £38000

many thanks

Karen

• Registered Posts: 41 ? ? ?
You can always deduct any associated selling costs from the proceeds as part of a capital gains calculation.
• Registered Posts: 469
Hi Wonderwife2008

Ok so does that mean in the formula that I use to calculate the cost of the item (becuase it a part disposal) do I use £38000 or £35000

thanks
• Registered Posts: 481
i think you should use 35000
• Registered Posts: 41 ? ? ?
Ah my age old problem of misreading the question ...

don't deduct the selling costs from the proceeds used in the calculation to find the original cost

ONLY deduct the selling costs in the capital gains calculation
• Registered Posts: 41 ? ? ?
in the formula you should use 38,000 so it would look like this 41,500 x 38,000/38,000 +48,000 which will give you 18,337
Proceeds -38,000 less cost of sale 3,000 will give you net proceeds of 35,000 and from that figure deduct cost of that plot you sold which is 18,337 the result is 16,663 which is the chargeable gain (i think!)
• Registered Posts: 469
ok thanks now need to drill in my head lol
at my age big problemo
• Registered Posts: 481