Online Calculator for CGT on sale of rental property

[liner33]

Can anyone suggest one ?

Looking at selling a flat we have owned since 1989 and has been rented out since 1996 (Same tenant since 2002) and looking at ballpark numbers

Also does anyone know if the cost of extending a lease would count as a CGT deductible expense?

[Eric Mc]

An additional capital cost post acquisition is usually looked on as an addition to the original cost of the property - so will help reduce the size of the gain.

The SETTING UP of a lease is looked on as a capital cost - so will serve to help reduce the gain.

The RENEWAL of a lease is NOT looked on as a capital cost and therefore would not be deductible when computing a gain.

The EXTENSION of a lease IS allowable - the cost of the lease extension is an allowable expense for CGT purposes – see the Inland Revenue Manuals page CG 71401. Any legal costs incurred in obtaining the lease extension would also be allowable.

As an aside, I presume you are aware that all Capital Gains on residential property sales must be reported to HMRC within 60 days of the date of completion and the associated Capital Gains Tax paid at the same time.


https://www.gov.uk/hmrc-internal-manuals/capital-g...

[liner33]

Many thanks Eric, not really looked into it as we have a tenant in place for the next few months but we are considering either investing some money into the property for improvements and then either re-rent or sell , but as the leasehold only has 52 years to run we will need to extend it to sell