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Where Taxpayers and Advisers Meet

Additions added to the property prior to it becoming a BTL

Litchy1986
Posts:6
Joined:Thu Dec 26, 2024 2:08 pm
Additions added to the property prior to it becoming a BTL

Postby Litchy1986 » Sun Jan 12, 2025 12:43 pm

Hi all,

woudl just like to confirm the below.
i bougth a house in 2016. i lived in it until 2020.
during that time, i had several pieces of work completed, including a loft conversion.
this significantly impacted the value of the house.
the house then became a BTL.
does the work completewd outside of the letting period still count as CGT tax deductible?

Thanks!

AGoodman
Posts:1936
Joined:Fri May 16, 2014 3:47 pm

Re: Additions added to the property prior to it becoming a BTL

Postby AGoodman » Mon Jan 13, 2025 1:58 pm

Yes - as it's a capital improvement.

I suspect (but am not certain) that that would be the case even if you had tenants in at the time - as odd as that would be. It's still a capital expense.

Litchy1986
Posts:6
Joined:Thu Dec 26, 2024 2:08 pm

Re: Additions added to the property prior to it becoming a BTL

Postby Litchy1986 » Tue Jan 14, 2025 5:45 pm

Thankyou, that all makes sense, but worth checking!


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