Capital Gains on Holiday Home question

[deanobeano]

Hi All,

I converted a stone barn (it was a shell) 2001-2006 in Wales
I now have it up for sale, previously it was only used by my family for weekends away etc (ie not rented out.)

The question I have is on capital gains.

When calculating the cost of the conversion, can I make any allowances for my time spent in performing park of the renovation works?

Basically, I spent approx 2 days a week there for about 18 months, labouring, painting & decorating etc.

I didn't submit any bills (to myself) for this work.

Thanks

[wattsm666]

No you cannot allow the time element

[sumo69]

wattsm666 said:

No you cannot allow the time element

Yes - wholly agree.

David

[softtop]

is there a way to bill himself to take account of the time? Or would it have to be someone else he bills?

[Eric Mc]

No.

How can you bill yourself?

If you DID put through a cost in the Capital Gains computation to "bill yourself" for time you put in, you would then have to declare that "income" as "earned income" in a self assessment tax return.

So, what you had gained in reducing the capital gain you would lose by declaring as ordinary additional personal income.

[sumo69]

HMRC dont even accept this - they see it as impossible to charge yourself.

David

Eric Mc said:

No.

How can you bill yourself?

If you DID put through a cost in the Capital Gains computation to "bill yourself" for time you put in, you would then have to declare that "income" as "earned income" in a self assessment tax return.

So, what you had gained in reducing the capital gain you would lose by declaring as ordinary additional personal income.

[deanobeano]

Thanks for your replies.