Hello all.
Property acquired in 2013. Where the 5/4/2015 valuation is used as the base costs, are the cost of purchase costs ( SDLT , legal fees etc) still allowable as a deduction?
Or ignored on the basis that the 5/4/2015 valuation is an all inclusive base cost?
Replies (2)
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Ignored - the April 2015 figure resets the valuation to the date the rules changed. Any history/improvements prior to that date become irrelevant
https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculat...
Rebasing from 2015
For disposals of UK residential properties by non-residents where you owned the property before 6 April 2015 the standard approach for calculating the gain is to use the market value at 5 April 2015.
- Establish the value of your property as of 5 April 2015 (known as ‘rebasing’).
- Work out the difference between the value on 5 April 2015 and the value when you disposed of the property.
- Deduct any costs of improving the property (enhancement costs) incurred from 5 April 2015 and the legal cost of selling the property (incidental disposal costs).
Client should watch for foreign taxes on the disposal too