Firstly whilst the property was a main residence, various enhancement expenditure was carried out.
a)Can you include this expenditure in the cost when calculating the chargeable gain even though it was carried out prior to the property being let.?
b)A value was put on the property at the point when it was made available to let, by a firm of estate agents. Is there any way that this value can be used when calculating the gain, upon subsequent sale of the property following the period of letting.?
Many Thanks for any comments
david
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Replies (2)
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Yes and no
a) as long as enhancement expenditure is reflected in the condition of the asset when sold, it should be allowed;
b) assuming property was purchased after 31/3/82 the only values of relevance to CGT are those at date of purchase and sale, plus of course any allowable expenditure.
do not forget 5 things
Indexation for pre-1998 costs.
Taper relief.
Lettings relief up to £40,000.
Annual exemption.
Deduction for main residence relief!