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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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If I sell my flat which is currently occupied by my son and

Resolved Question:

If I sell my flat which is currently occupied by my son and his wife (I live elsewhere) what improvements to the flat are deductible when calculating CGT payable. eg the cost of a new boiler, fitted cupboards in bedroom, total refit of kitchen and bathroom (new ceilings & lighting, new tiled floors, floor to ceiling tiling, new cupboards, appliances, bath, basin, toilet etc?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
My wife's income is around £9k pa and I am a higher rate tax payer. Flat was purchased for £150k in August 2009 and is now worth around £215k. I will not be selling before late summer.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question...Basically, you could regard expenditure relating to- cost of new boiler- total refit of the kitchen and bathroom including items mentionedas improvement expenditure that would qualify as a deductible expense from the gain made. In other words expenditure that would enhance the value of the property is allowable.If you were to replace just a basin or bath or decide to retile the kitchen but not replace the whole kitchen then this expenditure would be regarded as repairs and maintenance and not deductible. I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Thank you. Your advice confirms my understanding
Expert:  taxadvisor.uk replied 1 year ago.
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer. Best wishes

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