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: 15975
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

I've bought a property £200k and have just spent c£50k

This answer was rated:

I've bought a property £200k and have just spent c£50k on renovations. I understand that I can claim the £50k as allowances against capital gains. However, I am not selling the property now. many years will I be able to claim the £50k? Will I still be able to claim it in 2 years? Ten years?
Thanks, Matt

There is no time limit. You simply need to keep a record of the expenditure including invoices and receipts. When and if you sell the property, you take account of the renovations in your calculation of the gain or loss. HMRC may ask to see proof of the £50,000 expended on renovations.

Clearly, tax rules may change in the future but I cannot envisage a time when the cost of improvements or renovations is disallowed, though anything is possible.

If you are letting the property, some of the renovation costs may be deductible from the rent but only if they don't materially improve what was already there when it was in good condition.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Great - perfect answer, thanks help.