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Where Taxpayers and Advisers Meet

CGT on 2nd property

Surbitonian
Posts:1
Joined:Sat Dec 10, 2016 1:14 pm
CGT on 2nd property

Postby Surbitonian » Sat Dec 10, 2016 1:30 pm

Hi all,

Just looking for (hopefully) a quick piece of advice on allowances which can be claimed against CGT when selling a 2nd freehold property.

I understand the main allowances - cost to buy & sell etc - but my question relates to a yearly charge payable to the estate management company. The house I am selling is on a 10 year old estate of approx 90 dwellings and we all pay a yearly fee to the management company for maintenance of common parts. As there is no choice in this and it does not relate to any one specific property, I see the charge as a cost of ownership and therefore (in my opinion) allowable against CGT.

Is my assumption a reasonable one?

Thanks in advance for any advice.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT on 2nd property

Postby bd6759 » Sat Dec 10, 2016 5:08 pm

Nope.

You can only deduct the cost of acquiring the property plus the incidental costs of acquiring it, costs of enhancing the property, and incidental costs of selling it. Costs of ownership are not allowed.


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