Selling a Property - Allowable Expenses?

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    Selling a Property - Allowable Expenses?

    I have a small portfolio of flats and I plan to sell one which has just become vacant. I wont make more than 10k profit so CGT is not an issue but I will incur lost of expense while it is unlet, and also fees for the sale. Until it is sold there will be costs for energy, insurance, factor's fees, council tax, and there will selling costs, eg., legal fees, estate agent fees, furniture removal.
    Are any of these allowable expenses?

    #2
    The fees directly associated with the sale (agents fees and legal fees) are allowable against the capital gain (same with the eqivalent costs from the purchase).
    The expenses while not let (and the furniture removal etc) are incidental to the sale and are normal operating costs allowable against income.
    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


      #3
      Thanks for your post jpkeates. Unfortunately I doubt if I'll make enough profit to be caught by CGT. It's a small flat in a not very good area (good yield though), so I won't be able to claim agents fees and legal fees as an allowable expense.

      Comment


        #4
        The operating expenses ( council tax, insurance and service charge ) incurred for vacant flat before the date of exchange of sale contract are allowed against your annual rental income.

        The selling expenses ( legal costs and estate agent fees ) are allowed against the sale price which reduces your capital gains. .

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