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Capital Gains Tax allowable renovation costs

Started by Haroon, December 06, 2022, 08:41:44 PM

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Hi there

I have had some contradictory advice and was wondering if someone could advise further.

I am aware of what costs are eligible as improvements to the house, that is not the issue. The question is around the initial costs to refurbish the property so that it could be put on rent. In that I initially lived in the house, but then to put it on rent I had some work done (this is back in 2007). Would those costs be eligible for CGT deductions? (I did not claim them during self assessment)



If they were capital in nature (which most renovation work is unlikely to be), the issue is whether the work was done solely and exclusively for the business.
So, if you were living in the property when the work was done and benefitted from it, then no, but if you weren't living there and the work was to prepare the property for rent, then (assuming it wasn't really maintenance) there's no reason not.