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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14963
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Can I deduct council tax, utilities etc from CGT, whist a

This answer was rated:

can I deduct council tax, utilities etc from CGT, whist a house is empty and waiting to be sold?
JA: Which tax year is the deduction for?
Customer: 2018/19
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

 

No as these are not capital expenses you can claim things like capital expenditure such as a brand new bathroom or a whole new roof - or a new boiler and full central heating - things that add value to the property (but not general maintenance of decorating or repairs)

 

Thanks

 

Sam

Customer: replied 7 days ago.
I thought so, but I needed to check. I'm in the process of filling in my self assessment and i made a capital gain on my late mother's flat. I had rented it out for several years, but I stopped my rental business in the previous tax year. The house was vacant for 18 moths prior to sale.

So can I claim relief on;
Ground rent and services charges arising from the lease?
I planned to purchase a garage to increase the value of the flat, but the eventual purchaser didn't want the garage. I didnt purchase the garage, but had incurred legal fees for the aborted work - is this allowable?

Hi

No you cant claim any of those (all but the legal fees you should have offset against the rental income and if they incurred after the property was empty then there are yours to bear I'm afraid) and no the legal costs are not allowable as the garage was not purchased

 

Thanks

 

Sam

Customer: replied 7 days ago.
thanks, that's all. Now I owe the government a few hundred more!

Hi

 

Never a good feeling but at least you had the profit from the property sale to cover it! Small mercies :) Let me know if I can assist further but if you have all you need on this topic, it would be appreciated if you could rate me on the level of service I provided (rather than the saving you money) or click accept

 

Thanks

 

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 7 days ago.
One further check. I put new windows in the flat - presumably an improvement since they were double glazed and the originals were not. However I paid the fitters cash and although I have the receipts for withdrawing the cash and that it was used for the windows is written on the receipts. I assume that it is safer not to include this!

Regards
David

Hi David

 

No you would need an invoice and receipt to make a claim for these

 

Thanks


Sam