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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 my flat which I bought in 2002. I lived in

Resolved Question:

I recently sold my flat which I bought in 2002. I lived in it until June 2005 after which it was rented out until June 2015. I sold the property in December 2015. I would like to know what costs I can offset against CGT. I extended the lease on the flat in 2014, can I offset this cost? Also the flat needed extensive renovations costing around £20K can I offset this also?
Thanks
Jo Douglas
Submitted: 11 months ago.
Category: Tax
Expert:  TonyTax replied 11 months ago.

Hi.

Can you give ne a rough idea of what you spent £20,000 on please. How long did you extend the lease by?

Customer: replied 11 months ago.
Hi,
A new bathroom, kitchen, plastered all rooms, painting and decorating.
The original lease had 67 years left but has been increased to 155 years left to run.
Thanks
Jo
Expert:  TonyTax replied 11 months ago.

Thanks.

Take a look at HS283 for information on CGT and the main residence and here for information on working out the gain or loss.

I would claim all the refurbishment costs so long as none of the expense was claimed against rental income. The lease extention costs can also be claimed. You can also claim the legal fees incurred on purchase and sale, stamp duty, survey fees, selling agent fee, improvments costs (an extension for example).

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

Customer: replied 11 months ago.
Thanks, that's very helpful.
Regards
Jo
Expert:  TonyTax replied 11 months ago.

Thanks.

Would you mind rating my answer before you leave the site please.

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