That's really helpful. If I spent £20k on renovations (new bathroom, kitchen, complete refurb) in 2010 would this count towards capital improvements. If not, what does?
Buy/sell costs - does this include legals, stamp duty and agents fees?
If I'm paying £2,000 pa in service charges can this be offset at all?
Thanks for your response
The new bathroom and kitchen certainly would, but perhaps not the actual refurb - for a cost to be considered a capital improvement - it has to either fully replace what existed and enhance the property - such as new kitchen or bathroom, new roof, an extension or conservatory - double glazing or complete new central heating etc etc
Yes buy and sell fees do include stamp duty, estate agent fees and legal fees
No the service charges are to be offset against rental income
Let me know if I can be of further assistance but it would be appreciated if you could rate the level of service I have provided (or click accept)
One final thing...
When the flat was originally purchased in 1999 it was jointly owned by my sister and I. In June 2005 she gifted me her 50% share which at the time was valued at £103,000 (total flat value £206,000)
Does this have any bearing on the CGT calculation?
Thanks for your help