Client just sold main residence flat for £300,000 where occupied as main residence flat for only a part duration of ownership. He went into a nursing home quite a few years ago.
Under the lease agreement, on sale of the flat 3% of the gross sale proceeds has to be paid to the property management company. The property was sold for £300k so the overage payment was £9,000.
For this block of flats "overage payment" has to be read as a "sinking fund payment" for future repairs etc.
I cannot see that the £9,000 is a CGT deduction from the sale proceeds. Anyone disagree?