Selling let property - CGT vs Income Tax

[silentbrown]

We're selling a property that's been let out for several years. There's inevitably going to be a CGT bill.

Wev'e got some costs that are purely sale costs (conveyancing, EA fees) to offset against CGT but others (incurred after tenants moved out, but before exchange) that it should be OK to offset against letting income.

Unless I've missed something it's better to offset against income (higher rate payer, 40%) rather than CGT (24%) where possible?

Primarily we've had to pay maintenance expenses, council tax and utilities between tenant moving out and sale completion. It's been a staggeringly slow process, so around 6 months. Are we likely to get pulled up by HMRC saying those can't be offset against letting income?

[Eric Mc]

Highly unlikely that HMRC will pull you up on anything to be honest. Use your best judgement to offset what you think should be offset.

I presume you are aware of the HMRC 60 day online filing requiurement (this is additional to the Self Assessment tax return which will also include your CGT calculations).

[epom]

I thought you were going to spend the money on a Carrera GT rather than pay tax

Would have been much more interesting

[silentbrown]

Eric Mc said:

Highly unlikely that HMRC will pull you up on anything to be honest. Use your best judgement to offset what you think should be offset.

I presume you are aware of the HMRC 60 day online filing requiurement (this is additional to the Self Assessment tax return which will also include your CGT calculations).

Cheers. Yes, aware of the 60 day thing, although only sussed that out recently!

[silentbrown]

epom said:

I thought you were going to spend the money on a Carrera GT rather than pay tax

Could probably only afford to buy a spare toolkit for one