This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

2nd home purchase refurbishment and sale

wdm1010
Posts:16
Joined:Wed Aug 06, 2008 3:22 pm
2nd home purchase refurbishment and sale

Postby wdm1010 » Mon Aug 06, 2018 9:01 am

Hello,

During 2016 I purchased a 2nd home - I refurbished it. I was going to rent it out but with all the market uncertainty and a biggish mortgage I decided to sell and sold it December 2017.

I think I made a small profit - is this treated as income tax or capital gains tax (house refurbs is not a business of mine - I’m a full time employee).

Can all of the following be offset against profit:
- solicitor purchase / sell fees
- estate agent fees
- surveys
- builders costs
- carpet/curtains
- council tax
- electricity / gas / water bill costs

Is there anything else that can be offered?

Thank you!

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: 2nd home purchase refurbishment and sale

Postby maths » Tue Aug 07, 2018 6:24 pm

Should be a CGT charge. None of following deductible in calculating CGT charge:

- carpet/curtains
- council tax
- electricity / gas / water bill costs

Strictly, building costs should be apportioned between those costs allocated to repairs (not deductible) and those which enhance the value of the building (deductible).

wdm1010
Posts:16
Joined:Wed Aug 06, 2008 3:22 pm

Re: 2nd home purchase refurbishment and sale

Postby wdm1010 » Sun Sep 09, 2018 6:15 pm

Thanks

Also - I financed the refurbishment project and had significant interest charges - I assume these can be offset too?

Thanks

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: 2nd home purchase refurbishment and sale

Postby maths » Sun Sep 09, 2018 6:56 pm

No.

wdm1010
Posts:16
Joined:Wed Aug 06, 2008 3:22 pm

Re: 2nd home purchase refurbishment and sale

Postby wdm1010 » Mon Sep 10, 2018 8:26 am

Thanks

I guess the mortgage interest and costs can be offset from my personal tax self assessment then?

Thanks

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

Re: 2nd home purchase refurbishment and sale

Postby bd6759 » Mon Sep 10, 2018 11:52 pm

No. There are provisions that allow this.


Return to “Income Tax”