I have done my own conveyancing – CGT costs?

by Readers Question

10:03 AM, 26th October 2020
About 4 weeks ago

I have done my own conveyancing – CGT costs?

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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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Comments

moneymanager

13:19 PM, 26th October 2020
About 4 weeks 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

Judith Wordsworth

18:45 PM, 26th October 2020
About 4 weeks ago

Reply to the comment left by moneymanager at 26/10/2020 - 13:19
Thank you

Puzzler

9:42 AM, 31st October 2020
About 4 weeks ago

Would it not have been exempt from council tax? Depending when this was of course.

Judith Wordsworth

11:59 AM, 31st October 2020
About 4 weeks 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. 🙁


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