Capital Gains Tax (What can I claim against)

burrelly7

As the title suggests I'm after a list of things I can claim against Capital gains tax.

I inherited a house 7 years ago (than valued at 80k) and its been rented out until January of this year. I then did some work to the property (doing most of the work myself using approx 10k buying materials). The house has just sold for 140k, hence the fact I'm going to incure quite a hefty tax bill. I'm after as many ideas as possible ref things to claim against this hefty bill.
I'm already aware of the personal allowance I can put against it (approx 10k I believe)

Many Thanks

Burrelly7

fengirl_2

You would be able to include the cost of selling - agents and solicitor's fees and any capital improvements - basically the items you couldn't claim against repairs for income tax.

burrelly7

Sold it private so looking like I'm going to have to live with the big tax bill.
Bad times

RayWolfe

Of course it's not bad times. You are better off by the absence of those costs to the value of 60%!
Would you rather have paid 100% of the cost of estate agents or retain 60%?
Some folk are so obsessed about not paying tax that they can't see the wood for the trees.

00ec25

the fact you have never lived in it (I assume it was empty from Jan to date of sale) means as Fengirl says it is 10K personal allowance and your 10K materials - provided you have documentary evidence to show what they were used for and those jobs are capital works not repairs.

if they were for repairs then (I think) the fact the work was after the end of the rental period and whilst the property was on the market, with a clear intention not to resume the rental business, would negate you being able to claim for them against your income tax on the rental

so you finish with about 32,700 left after tax and have already had nearly 7 years rental income out of it, all in all a nice supplement to your inheritance

Sheppyd_2

Good news is that Capital Gains Tax is only 18%