CGT Question

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    CGT Question

    We bought the house of the people next door 10 years ago and let them live there rent free.
    The property was vacated and sold in the last financial year after We had a builder completely renovate it.

    The work undertaken was

    New kitchen
    New bathroom
    Heating / electric overhaul
    Essential roof repairs
    complete redecoration
    New carpets throughout

    Please could anyone tell me , out of the above works . Which can we claim for against the CGT we will have to pay on the profit of the sale. Thanks

    #2
    A very good question.

    "We bought the house of the people next door 10 years ago and let them live there rent free."

    Tell us a bit more. How did this work? Do you have other properties on a similar basis? What state was the house in when first purchased? How did you finance the purchase?

    Comment


      #3
      Hi Telometer
      Thanks for the response. Only other property is my main residence. Bought this property from owners & let them live rent free there for as long as they wished . Agreement( copy of with both solicitors )was they could live there rent £1 per year which was never offered or asked for , but as tenants they were responsible for updating/repair costs that came about during their tenancy I Purchased property from them outright with no mortgage . The house was in a reasonable state of repair when I purchased it. While tenants , no repairs at all were done to the property by them . Hence when it became vacant it was in need of complete renovation. Other than building works listed , new windows were put in.
      Hope this helps & thanks in anticipation.

      Comment


        #4
        Why were you so generous?

        Comment


          #5
          Hi Telometer
          Friendship + good long term investment.
          Have you any ideas on what elements of the building works that I can off set against the CGT that will be payable as a result of the profit on the sale ?
          Thanks.

          Comment


            #6
            My initial reaction is "none" as these are repair costs returning the asset to the state in which you acquired it.

            Comment

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