How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

I sold a buy to let property, but reinvested in a holiday let

This answer was rated:

I sold a buy to let property, but reinvested in a holiday let property in the same tax year. Is the sale of the first property subject to capital gains?
If so, can I offset improvements (new kitchen, bathroom, double glazing) against the gain?


I'm afraid that the buy to let property you have just sold is not classed as a business asset which means that you cannot rollover the gain into the purchase of the holiday let property, thereby deferring the CGT charge. You will need to disclose the gain or loss.

The costs of improvements made to the property can be taken into account in calculating the taxable gain. These days, HMRC will allow the cost of replacement double glazing to be claimed against rental income, especially if it is replacing existing double glazing. If you didn't claim it that way, then claim it as an improvement. Take a look at the notes here.

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

Customer: replied 3 years ago.

Thank you, XXXXX XXXXX confirm, the new kitchen and bathroom can be offset against the capital gain?

If they are improvements on what was there before, then the answer is yes you can claim for the costs of the new kitchen and bathroom.
TonyTax and other Tax Specialists are ready to help you