Can I deduct 100% of initial costs?

  • Filter
  • Time
  • Show
Clear All
new posts

    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?

    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 .


      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...


        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).


        Latest Activity


        • Reply to Full accounts requested - Treasurer avoiding me!
          by GeeMan16966
          Thanks, that helps a lot.
          06-06-2020, 15:14 PM
        • Full accounts requested - Treasurer avoiding me!
          by GeeMan16966
          Just joined PMC as Director and CS and on checking the documents handed to me for storage, there is a massive gap from 2010 to now! I have managed to find through other directors the meetings minutes for the past 9 years, however I am struggling to be given the full accounts. When I ask, I am told I...
          05-06-2020, 13:30 PM
        • Reply to Full accounts requested - Treasurer avoiding me!
          by Gordon999
          If you are listed as director and officer of the company, you can request any information going back 6 years....
          06-06-2020, 11:57 AM
        • Reply to Full accounts requested - Treasurer avoiding me!
          by GeeMan16966
          The directors changed in 2014 and then got
          Total exemption small company accounts
          Been filing Micro accounts since - as a shareholder and Company Secretary and director am I entitled to see the bank statements if they do not have full accounts?...
          06-06-2020, 10:27 AM
        • Reply to Full accounts requested - Treasurer avoiding me!
          by GeeMan16966
          Thank you.
          06-06-2020, 10:09 AM
        • Reply to Moving Back Into Let House
          by AndrewDod
          No you can't do that. If the tenant actually broke stuff and you sort it before the tenancy ends, then maybe. At the start of putting a property out to rent you can make tax related expense claims - you can't have a double bite, fixing it for yourself at the other end....
          05-06-2020, 21:55 PM
        • Moving Back Into Let House
          by Sentaiwarrior

          I was wondering if anyone can provide me with advice.

          I used to live in my own house. I moved for work a few years ago and let my house (with consent to let).

          I'm planning to move back into my house which is currently still let. I've given the tenant three...
          05-06-2020, 20:16 PM
        • Reply to Moving Back Into Let House
          by ash72
          The wear and tear allowance has been removed so you could expense the actual costs of the items as an expense, on a like for like basis, only if you are then renting it out, if it is returning back to a residential property then you couldn't.
          05-06-2020, 20:30 PM
        • Accountancy Fees
          by mmooney
          Hi Folks,

          Looking for some general advice. I own 5 BTL properties individually and have 3 BTL properties as a LTD Company. My tax returns are relatively straight forward and I was thinking to do my own tax returns this year. My account charged me GBP1500 for the return for my Ltd Company,...
          05-06-2020, 07:23 AM
        • Reply to Accountancy Fees
          by Gordon999
          I think its better for Ltd companies to have their annual accounts done by chartered accountant. Very difficult to get any bank loan without showing certified accounts.
          05-06-2020, 18:33 PM