Sold rental property - can I claim costs?

ManicMum

Hello

I sold a rental property in May. Can I claim costs associated with the sale on my tax return?

Thanks

yelf

yes, they go against the profits

terryw

The selling expenses can be set against the gain in calculating capital gains tax but not against the profit on the rental income.

here's a link to the CGT rules:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4016313

antrobus

yelf wrote: »

yes, they go against the profits

No they don't.

See the reply from terryw above, and follow their advice.

ManicMum

thanks. I sold in May so have not declared my gain yet. I just do this on 2010/11 tax return right? I keep thinking i should have told them about it already. I will be exempt anyway - have established that much.

Shame can't offset against profits!!

terryw

ManicMum wrote: »

thanks. I sold in May so have not declared my gain yet. I just do this on 2010/11 tax return right? I keep thinking i should have told them about it already. I will be exempt anyway - have established that much.

Shame can't offset against profits!!

Yes on 2010/2011 return.

money_saving_fan_3

Show any gain on 2010/2011 tax return. You can set off any costs involved in the sale. You should also remember to include costs involved in the purchase such as stamp duty and legal fees in the purchase price of the property.
If you have made any improvements which were not set against rental income you should be able to set those costs off too.
Have you ever lived in the property yourself? If so there may be exemptions that you can claim.
Don't forget your annual capital gains tax allowance too.
If it is held in joint names with your spouse, or indeed another, you can claim two lots of annual exemption.