CGT allowable deductions

[jmn]

I'll be selling a couple of rental properties within the next 12 months.

I understand that routine maintenance costs are not deductible.

Would the installation of central heating be an allowable deduction?

A new roof with insulation?

New enlarged kitchen?

Double Glazing to replace single pane windows?

Do HMRC need to see actual invoices as much of this work was done many years ago.

[Eric Mc]

CGT rules state that "enhancement expenditure" is offsetable against the capital gain.

HMRC give examples of what they think "enhancement expenditure" is. For example, anything that improves the property over and above what it was originally will most likely count - such as central heating where there was no central heating before, double glazing when the previous windows were single glazed, extensions to the property etc...

Merely replacing an item with something similar doesn't count.

Ordinary repairs and maintenance is not allowed either although, if the properties had been rented, in most cases, repairs and maintenance would have been allowed against the rental income.

[jmn]

Thanks. That's very helpful.

[Eric Mc]

Be aware that once a residential property sale has been completed you only have 60 days to submit an electronic CGT return and pay any CGT due.

[bennno]

jmn said:

I'll be selling a couple of rental properties within the next 12 months.

I understand that routine maintenance costs are not deductible.

Would the installation of central heating be an allowable deduction?

A new roof with insulation?

New enlarged kitchen?

Double Glazing to replace single pane windows?

Do HMRC need to see actual invoices as much of this work was done many years ago.

Would you not have offset those costs against previous years rental incomes?

[markh1973]

bennno said:

jmn said:

I'll be selling a couple of rental properties within the next 12 months.

I understand that routine maintenance costs are not deductible.

Would the installation of central heating be an allowable deduction?

A new roof with insulation?

New enlarged kitchen?

Double Glazing to replace single pane windows?

Do HMRC need to see actual invoices as much of this work was done many years ago.

Would you not have offset those costs against previous years rental incomes?

You could only offset the elements that weren't considered to be capital improvement.

[jmn]

Again thanks all. Very helpful.