I have done my own conveyancing – CGT costs?
I have sold one of my rental properties and have done my own conveyancing, on the sale as well as on the purchase.
I understand that I can put related buying, selling and improvements, but not general maintenance, to reduce the amount of CGT liability.
In relation to the buying and selling costs to lessen CGT can I include postage and photocopying costs as well as stationery legal forms, LA searches, EPC etc?
Can I also include Council Tax from purchase to the first tenant moving in whilst the works required to make the property rentable were carried out e.g. there was only a bath and no basin or toilet in the bathroom; no kitchen sink or units; only the pipework for a central heating boiler and walls required plastering.
Many thanks
Judith
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Member Since February 2018 - Comments: 627
1:19 PM, 26th October 2020, About 5 years ago
I’m not an accountant but a few simple rules might help:
1) if the cost is related to the acquisition or disposal of the property itself it is CGT allowable
2) if related to any application or termination of a charge i.e. finance it is a revenue expense
3) the Council tax charge referred to appears to be on the new property, it is a revenue expense and claimable in the current period of accounting, any CGT cost wouldn’t be claimable until that property were disposed off so it would be advanatageous for it not be a CGT cost unlike the heating system: this link might be useful
https://community.hmrc.gov.uk/forums/customerforums/sa/4d8cc6a6-0232-ea11-8454-00155d3bd04f
Member Since January 2015 - Comments: 1450 - Articles: 1
6:45 PM, 26th October 2020, About 5 years ago
Reply to the comment left by moneymanager at 26/10/2020 – 13:19
Thank you
Member Since July 2013 - Comments: 1266 - Articles: 1
9:42 AM, 31st October 2020, About 5 years ago
Would it not have been exempt from council tax? Depending when this was of course.
Member Since January 2015 - Comments: 1450 - Articles: 1
11:59 AM, 31st October 2020, About 5 years ago
Reply to the comment left by Puzzler at 31/10/2020 – 09:42
0 council tax on empty properties sadly a thing of the very distant past. 🙁