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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I've bought a property £200k and have just spent c£50k

Customer Question

I've bought a property £200k and have just spent c£50k on renovations. I understand that I can claim the £50k as allowances against capital gains. However, I am not selling the property now. many years will I be able to claim the £50k? Will I still be able to claim it in 2 years? Ten years?
Thanks, Matt
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
.

There is no time limit. You simply need to keep a record of the expenditure including invoices and receipts. When and if you sell the property, you take account of the renovations in your calculation of the gain or loss. HMRC may ask to see proof of the £50,000 expended on renovations.

Clearly, tax rules may change in the future but I cannot envisage a time when the cost of improvements or renovations is disallowed, though anything is possible.

If you are letting the property, some of the renovation costs may be deductible from the rent but only if they don't materially improve what was already there when it was in good condition.

I hope this helps but let me know if you have any further questions.
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Customer: replied 2 years ago.

Great - perfect answer, thanks help.

Matt

Expert:  TonyTax replied 2 years ago.
Thanks.