Can costs of 'tarting a house up for sale' be deducted from CG liability on disposal?

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    #16
    https://www.gov.uk/tax-sell-property/work-out-your-gain

    Specifically says normal maintenance expenses such as decorating do not count as allowable costs.

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      #17
      Originally posted by AndrewDod View Post

      It is entirely unambiguous and even gives an example. "costs of improvement works, for example for an extension (normal maintenance costs, such as decorating, do not count)"

      Even replacing a boiler does not count - so why do you think sweeping the carpets would count as a Capital Expense.....
      I would argue that redecorating,even though existing decor is clean etc,to enhance a house sale is not a normal maitenance cost.This is a grey area ie not b+w as some suggest.Replacing a wooden window with upvc could be either a repair or upgrade depending on context.

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        #18
        Deduct costs


        You can deduct costs of buying, selling or improving your property from your gain. These include:
        • estate agents’ and solicitors’ fees
        • costs of improvement works, for example for an extension (normal maintenance costs, such This as decorating, do not count)
        Last edited by Gordon999; 16-09-2020, 06:44 AM. Reason: Copied from Govt website.

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          #19
          Above info is copied from Govt website. So if you decide to tart up, included some improvement work and apportion the costs between maintenance and improvement.

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            #20
            Originally posted by gnvqsos View Post
            I would argue that redecorating,even though existing decor is clean etc,to enhance a house sale is not a normal maitenance cost.This is a grey area ie not b+w as some suggest.Replacing a wooden window with upvc could be either a repair or upgrade depending on context.
            It isn't really a grey area.

            HMRC's tax manuals are clear about what is a capital item - adding a room, adding an externsion.
            They accept that any replacement is likely to bring about an upgrade, a new boiler is likely to be more efficient than an older device.
            Replacing wooden window frames with UPC is maintenance, you are simply replacing standard windows (installed when wood was standard) with standard windows (UPC being the current standard).

            There used to be some debate about installing double glazing, which is an upgrade, but try buying a single glazed window in 2020...
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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              #21
              And to add an extra thing to this - even some capital expenses are not legitimate claimable ones. For example if you add a new wall in 1996, and then in 2006 abolished that new wall and create a new room with new walls again -- the 1996 expense can't be claimed in your 2020 sale. The thing has to exist at the point of sale.

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                #22
                Do you work for HMRC as you speak with immense authority?

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                  #23
                  Originally posted by gnvqsos View Post

                  Do you work for HMRC as you speak with immense authority?
                  ^^Very peurile/silly comment

                  But yes, the capital improvement has to exist in the finally sold item to be eligible as a capital expense.

                  And no I don't "work for HMRC"

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                    #24
                    I will ignore your remark but I maintain very few things are quite as clear as you suggest,otherwise there would be no higher courts of appeal where even staute law is contested.Unless you work for HMRC or have been trained by ex-HMRC you cannot be so categoric.My father ran Gloucester tax office abd he frequently recalled grey areas which accountants etc. would contest.
                    PS would help if you could spell puerile!

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                      #25
                      There are always grey areas.
                      Luckily this isn't really one of them.

                      There are things that fall into both categories (capital and maintenance) - extending a bathroom is the usual textbook example.
                      But preparing a property for sale shouldn't be a capital expense, and you'd have to do something completely out of the ordinary for it to become one.
                      Way beyond "tarting up".

                      And for what it's worth, the last place I would look for tax advice is HMRC.

                      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                      Comment

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