Can I deduct 100% of initial costs?

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    Can I deduct 100% of initial costs?

    My husband and I bought a buy to let jointly in 2007. To save tax on the rental income we changed the ownership from 50/50 to 1% and 99% in 2012 as my husband paid 40% tax and I paid none.

    We have now sold the flat. We didn't change the ownership back to 50/50 before selling as we didn't think we would make much profit as we bought at the height of the market just before the crash and spent a lot on renovations.

    My question is can I deduct the full £30k we spent in 2007 on buying fees, stamp duty, renovations etc. from the gain when calculating my CGT or can I only deduct £15k being my share, as the property was owned 50/50 at that time?

    #2
    1. I would calculated the "capital gain" by deducting from the sale proceeds, the original cost plus all the expenses in 2007 ( conveyancing solicitor fees , sdlt and renovation ).

    2. Then apportion the gain between husband and wife ( 1 / 99 ratio ) and each claim for deducting the capital gains allowance of £ 11,100 .

    Comment


      #3
      I'm looking for similar information. Gordon can you confirm that renovation costs are deductable against CGT? My accountant is saying they are not. Hmmm...

      Comment


        #4
        Were they claimed as operational costs previously?
        Did you live in the property after renovation?

        Does the accountant say why they're not deductible (they would normally be).
        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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