CGT and BTL Question

Somerset

Has indexation allowance been removed.

I'm in the process of selling a Btl to the tenant. Owned it for three and a half years. I had a look at taper relief and it seems it's n/a to me i.e. you get 5% off the gain for each full year after three years. I'll only have 3 & 1/2 so nothing there. But when I bought it I got a new kitchen and bathroom installed, say 7K, So I can't index this 7K because indexation has gone ?

Also, can I include the 'financing' cost to reduce the gain. It was bought on a mortgage with product fee, admin fee etc. Can I include these 'financing' costs as part of the acquisition costs ?

Thanks in advance

silvercar

there is debate on where the border line between upgrading (allowable for CGT) and maintenance (allowable expenditure against income tax) falls. I don't know whether replacing a kitchen and bathroom would count as maintenance or not.

you can include finance costs, including survey fees in your costs.

Incidentally 3 years gives you taper relief at 5%.

Don't forget your CGT allowance of £8,800.

Somerset

silvercar wrote:

Incidentally 3 years gives you taper relief at 5%.
.

No offence silvercar but are you sure ? I looked it up last night but could easily have misunderstood. If I get the 5% for the 3 years ownership, great, every little helps. :T