is the 160K for the entire acreage and the house?
if you dispose of the house and land separately there will be a part disposal and only some of the original cost to you will be offsettable against the proceeds received for the house and 2 acres. no indexation is available.
market value of the land at time of sale will need to be assessed as well. you can take for granted that you will be paying some CGT, but this depends on a number of factors.
with firmer figures, your tax adviser will calculate the potential CGT exposure.