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Where Taxpayers and Advisers Meet

CGT on house sale - allowable deductions

djtjuk
Posts: 3
Joined: Sat Dec 08, 2018 6:14 pm

CGT on house sale - allowable deductions

Postby djtjuk » Sat Dec 08, 2018 6:22 pm

Hi, i have recently sold a property which is liable for CGT. I am trying to find out exactly what i can offset as an expense, the list of expenses incurred are as follows-

Conveyancing fees for purchase
Stamp duty on purchase

Conveyancing fees on sale
Estate agent fees
EPC
Gas safety cert
Indemnity policy for unadopted road

I know the conveyancing, estate agent fees and SDLT are ok, but i wasn't sure about the other bits. I presume the usual disbursements of office copies, ID checks, bank transfer fees etc..... aren't allowable?

Many thanks for the help

pawncob
Posts: 4192
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: CGT on house sale - allowable deductions

Postby pawncob » Tue Dec 11, 2018 5:19 pm

All costs associated with the purchase or sale are deductible. But.............gas safety certificate is usually only required for letting purposes. If it's necessary to complete the sale then it's OK. Indemnity policy should be OK as well. If in doubt, claim it on the comp and note it in the white space.
With a pinch of salt take what I say, but don't exceed your RDA

bd6759
Posts: 2963
Joined: Sat Feb 01, 2014 3:26 pm

Re: CGT on house sale - allowable deductions

Postby bd6759 » Wed Dec 12, 2018 12:39 am

All costs associated with the purchase or sale are deductible.
That is not correct.

Only costs "incidental" to the acquisition and sale are allowable. These are specifically listed at s38 TCGA
… being fees, commission or remuneration paid for the professional services of any surveyor or valuer, or auctioneer, or accountant, or agent or legal adviser and costs of transfer or conveyance (including stamp duty)… costs of advertising to find a seller, and … costs of advertising to find a buyer

djtjuk
Posts: 3
Joined: Sat Dec 08, 2018 6:14 pm

Re: CGT on house sale - allowable deductions

Postby djtjuk » Wed Dec 12, 2018 10:35 am

Thank you for the replies, so basically it'll be -

Conveyancing fees for purchase
Stamp duty on purchase

Conveyancing fees on sale
Estate agent fees

What about EPC as it's a legal requirement for the sale?

bd6759
Posts: 2963
Joined: Sat Feb 01, 2014 3:26 pm

Re: CGT on house sale - allowable deductions

Postby bd6759 » Wed Dec 12, 2018 12:16 pm

The legislation is prescriptive. EPC isn't on the list.

djtjuk
Posts: 3
Joined: Sat Dec 08, 2018 6:14 pm

Re: CGT on house sale - allowable deductions

Postby djtjuk » Wed Dec 12, 2018 8:36 pm

Ok thanks, the only thing that is a little unclear is what constitutes "the professional services of any surveyor or valuer, or auctioneer, or accountant, or agent or legal adviser and costs of transfer or conveyance (including stamp duty"

I have the invoice from the solicitor and the items on there are-

Professional charges
Search fees
Land registry search fees
Land registry fees

So would it be just the top line that can be deducted, or do any others constitute a "professional service"?


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