Flat Conversion Allowances and CGT on Disposal
Hopefully somebody can clarify this...
Purchase property for £500K, spend £250K converting upper floors to Flats, then claim FCA on the 250K. All FCA qualifying conditions met and claim allowed by HMRC.
Original advice given by accountant was that on disposal of the property the £250K would be allowable expenditure to claim for CGT purposes even though the Flat Conversion Allowances were being claimed.
Disposal would be at profit and more than 7 years since project so no balancing charges to consider.
Thanks in advance....