CGT on BTL house build

[Dorsetlad]

Hi, new to this forum and looking for some advice if possible.

I purchased a plot of land in 1994 and then built a house over the next few years using individual trade subcontractors. I had always intended to live in the property but circumstances changed and ended up renting it out. It has been a BTL property ever since.

My question is if I now decide to sell the property how will HMRC approach the purchase price of the property in their calculations. Obviously the initial purchase of the land is available from the land registry but the construction costs will now be difficult to ascertain/verify. I do seem to remember claiming VAT back on some of the materials and trades but I know this did not amount to the total cost.

What would be the best way to approach the CGT situation with HMRC?

Thanks

[wamstax]

Clearly the most tax efficient way of doing this would be to be able to provide a project file showing all the invoices and costs that were incurred on the initial build and subsequent improvement costs still reflected in the property at point of sale.

Ok in the position that you are in you really have to sit down and get together whatever information that you can to prove the total build and other costs. Failing a satisfactory conclusion then you might have to think out of the box and look at things like paperwork at that time indicating what the total cost of the build was to be. Really you just got to get together whatever you can to evidence the total cost e.g. did you not for example have any contemporaneous spreadsheet or budget calculations that might get you as near the correct result as possible. Its Ok in retrospect but shows the advantages of preserving records beyond what the statutory position might be.