Taxpayer has held a plot of land for some years. A few years ago, he placed it on sale and had a prospective buyer. He incurred some costs preparatory to the proposed sale but the buyer could not complete. Can he now add these costs to the asset for the purposes of calculating the CGT on the sale that went through in 2019-2020?
This is from CTM08260 - Company Taxation Manual
Expenditure connected with the disposal of an investment
Similar considerations apply where it is a disposal rather than an acquisition that is being considered. Once it has been decided to dispose of an investment in some way, any costs incurred after that point will be costs of the disposal and therefore capital. We would generally consider the decision to dispose of an asset to be the point at which a decision was taken to market it.
This is obviously a Company Tax Manual. What would the position be for CGT?