Capital gains tax on Property

[chris7560]

Hi,

I understand that the following expenditures can be taken off when calculating capital gains tax on Property;
Solicitor fees
Stamp Duty
Extension made to property ( is this only the build cost and not from the list below ?)

As no extension has been done to my flat can any on the following be included as allowable expenditure ?
Purchase of Freehold
Window replacement
New boiler & radiators
New Kitchen
New Bathroom

[bd6759]

1. The cost of acquiring and the incident costs of acquiring (fees, SDLT etc) the asset

2. Costs incurred enhancing the value of the asset

3. Incidental costs of disposing of the asset.

You need to decide if the windows, kitchen and bathroom were repairs or enhancements. Boiler and radiators were almost certainly repairs.

[chris7560]

Thank you for your response.
It appears that I need to decide what a repair is and what an enhancement is? I understand that the acquiring and the incident costs along with costs of disposing of the asset are included as allowable expenses.
Assuming that I have purchased a property that will be my second home CGT will apply. At the time of purchase the property has the following;
1 Kitchen
1 Bathroom
3 Bedrooms
Heating
Windows
I now decide that I want to enhance the property and have 2 options;

Option 1: I undertake work to enhance the above to the property by putting in a new kitchen, bathroom and heating system. The property has not been enhanced as the above are part of the house when I purchased it therefore it is a repair and hence no costs associated to the work are allowable expenses that can be taken off CGT?

Option 2: I undertake and extension to the property and include replacement of the original Kitchen, bathroom and heating system end up with a property that has;
1 Kitchen
3 Bathrooms
5 Bedrooms
Heating
Windows
Based on the original property I have enhanced the property by;
2 Bathrooms
2 Bedrooms
As a result the definition of enhancement is that I can claim the allowable expenses associated with these 2 only as that other work is a repair to the original property?