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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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Can i claim redemption and interest costs against my CGT. Example-

Customer Question

Can i claim redemption and interest costs against my CGT.
Example- sold a house, but was caught out by the early payment of the mortgage and so got charged redemption fee.
again whilst i was renovating the house with the intent to sell, can i claim the interest.
many thanks
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Mortgage redemption costs are not a deductible expense for Capital Gains Tax purposes I' afraid since they are not directly related to the sale of the property. Take a look here for a recent tax case on this.

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

same with interest?

Expert:  TonyTax replied 2 years ago.

That's correct unless you are acting as a property developer and intend to disclose the profit as a business profit.