What allowable expenditure can I claim against Capital Gains Tax?


If you sell an asset for more money than
you paid for it, you’ll need to pay capital gains tax on the difference. To
reduce your bill, you can include certain costs on your tax return.
We call this allowable expenditure. This includes the price you paid for it,
anything you’ve spent improving its value (for example if you extend a house),
the improvement must still exist when you sell or dispose of the asset, and
also include the costs involved in buying or selling your asset. These are
fees and other charges from surveyors, valuers and accountants, but not the cost
of calculating your capital gains tax bill. Any transfer or conveyancing costs,
such as solicitors fees, Stamp Duty Land Tax, any advertising costs, and if needed
the cost of confirming who owns or is entitled to the asset. Costs you can
claim when working out your income tax are not allowed when it comes to capital
gains tax. For example, if you’re selling a house you’ve been letting out you
can’t claim for general maintenance costs or the cost of financing the
property. If you owned an asset on the 31st of march 1982, you may be able to
use the market value on this date for the actual cost using special rules. You
can find more information about allowable expenditure, including our
special rules, in HMRC’s capital gains manual on GOV.UK

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