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Where Taxpayers and Advisers Meet

Planning for CGT on renovated home which is then let

blockquote
Posts:4
Joined:Sun Jun 17, 2018 11:20 am
Planning for CGT on renovated home which is then let

Postby blockquote » Sun Jun 17, 2018 11:32 am

Hi,

I bought a property in 2016 for £105,000. For the past 2 years I have been living in the house and renovating. The value is now £150,000. Due to a change in circumstances I will be moving out of the house in August and letting the whole property. I read that let property if sold are liable for CGT on the period of time they were let, and am wondering if it would be prudent to request a professional valuation now to show the value of the property before it is let, and as a result of my renovation. What I want to avoid at some future date is the CGT being based on the sale price minus the purchase price (£105,000) rather than the sale price minus the value post-renovation (£150,000). I don't have many of the invoices from the renovation so would much rather get a valuation if this would be accepted by HMRC.

Any thoughts on this would be welcome.

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

Re: Planning for CGT on renovated home which is then let

Postby bd6759 » Sun Jun 17, 2018 1:09 pm

CGT is based in the difference between the selling price and the cost. You can include allowable enhancement expenditure as a cost. A valuation would be pointless. You need to look out the receipts and invoices. Keep your bank and credit card statements showing the expenditure.

blockquote
Posts:4
Joined:Sun Jun 17, 2018 11:20 am

Re: Planning for CGT on renovated home which is then let

Postby blockquote » Sun Jun 17, 2018 5:02 pm

Thanks for the advice. The major costs are all listed on my bank statements. I'll keep them safe.


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