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Where Taxpayers and Advisers Meet

Rental property improvement

Joined:Tue Dec 16, 2014 8:20 am
Rental property improvement

Postby kanrent » Thu Jul 30, 2020 4:28 pm

Hi, I had some work done on my rental property to improve it so I can re-let it, I can't get tax relief as an expences because its an improvement, am I entitled to claim some tax relief from cgt when I come to sell it?

Joined:Sat Feb 01, 2014 3:26 pm

Re: Rental property improvement

Postby bd6759 » Thu Jul 30, 2020 9:47 pm

1. Depends
2. Depends.

The rule for expenses against income is that they are not excluded by any provisions of the law, such as being capital or not incurred exclusively for the purposes of the business.

The rule for CGT is that the expenditure must be exclusively incurred for the purpose of enhancing the asset, and is not expenditure that might be allowable as a deduction against income in a hypothetical trade.

Return to “Capital Gains Tax, CGT”