SDLT BTL property for CGT

[nawaz83]

Hi all,

Can't seem to find an answer on this easily, I understand for CGT purposes, SDLT reduces the taxable gain on the sale of a BTL property?

However, if a property that used to be a residential (Dec 2012 to Mar 2019) and subsequently became a BTL (Mar 2019 to Dec 2020) is sold, is the SDLT paid at purchase (Dec 2012) deductable for CGT purposes?

Many thanks

[bd6759]

Yes. SDLT is an allowable cost when computing the gain.

[nawaz83]

Thanks for replying, but is it right that a cost incurred when it was a residential property is deductible when it is a BTL. Intuitively doesn't feel right?! Are there any guidance notes on this?

[bd6759]

Why doesn’t it seem rights? Maybe you shouldn’t count the actual cost of the property either since that too was incurred before it was a BTL.