Letting relief

GURMEET22 · Postby **GURMEET22** » Fri Aug 29, 2003 6:45 am

MY Sister and I have inherited a poperty in 1986 and are about to sell it making apprximately a 100K gain.

It has been let out except for the past year it has been empty to redecorate/ recarpet etc, could you please inform me if I can use these costs to ruduce my CGT Bill, and explain to me what letting relief is ?

Nigel Lord · Postby **Nigel Lord** » Mon Sep 01, 2003 12:38 am

GURMEET22

Assuming that no income tax relief has been claimed on the redecoration costs, the improvement expenditure will enhance the base cost of the property in computing any capital gain.

Residential Lettings Relief is only available if you have lived in the property as your Main Residence so will not apply in your circumstances.

You will appreciate that a brief period of residence prior to sale could subtsntailly reduce your CGT exposure.

If you require any further assistance please do not hesitate to contact us, and we will be happy to act on your behalf.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk