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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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Client bought and sold a property inside 13 months. Paid tax

Resolved Question:

hi,
client bought and sold a property inside 13 months.
Paid tax under Capital Gains.
on further investigation the Revenue are disallowing a certain amount because it relates to gas, electricity, maintenance charge etc things that they are saying doesn't enhance the property therefore not capital expenditure.
I appreciate that it isn't capital expenditure but what does one do with that expense. the client had to spend that money otherwise how was he able to carry out the work.
he has other property rentals, but I don't believe that he is able to claim these expenses against the income of other rental income.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi.

Assuming the property was never available for letting, there is nothing you can do with those expenses. They are revenue expenses, not capital expenses and would have been deductible had the property been let or the profit on sale disclosed as a trading profit and not a capital gain. Revenue expenses are never deductible from a capital gain.

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

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