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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I recently sold two flats, both within the same building. They

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I recently sold two flats, both within the same building. They were the only properties I possessed. One (the ground floor flat) was where I lived for the last 15 years, the other (the basement flat) I had a mortgage on and was let to a friend. The leases on both had reduced to 60 years. To sell them I paid £40,000 to extend the basement flat lease to !25 years while the person buying the ground floor flat also paid £40,000 to extend that lease, in addition to paying the relatively cheap purchase price. (He subsequently bought the basement flat too.)
My question is can I charge the £40,000 I spent to extend the basement lease against my capital gains?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

The cost of extending the lease on the basement flat will be fully deductible from the capital gain you made on that property.

I hope this helps but let me know if you have any further questions.

TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15886
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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