Question about capital gains on a house

chris_m

booksurr wrote: »

based on the current rules and the current rates here is an example I did only a few hours ago. Use the search button!

https://forums.moneysavingexpert.com/discussion/5315071

Hehe, beat me to it - I was about to suggest that they searched for posts by you :T

Innys1

chris_m wrote: »

Hehe, beat me to it - I was about to suggest that they searched for posts by you :T

Which is why I originally suggested the OP did a search - and they promptly ignored my suggestion.

adindas

I wonder how the CGT is calculated. If for instance I bought a house which need a lot of TLC from the auction say £100,000 I then say spend a lot of money for TLC, for instance £75,0000 . After that I manage to sell it for £250,000 (say)
How is the CGT calculated, is the TLC cost come into the equation?
If yes how to prove all of TLC cost, from contract value with contractor or what ??

Thanks

booksurr

adindas wrote: »

I wonder how the CGT is calculated. If for instance I bought a house which need a lot of TLC from the auction say £100,000 I then say spend a lot of money for TLC, for instance £75,0000 . After that I manage to sell it for £250,000 (say)
How is the CGT calculated, is the TLC cost come into the equation?
If yes how to prove all of TLC cost, from contract value with contractor or what ??

Thanks

if the works performed are capital in nature then you add that to the purchase cost and work out the gain

if the works are revenue by nature then they are not allowable against CGT

or if your purchased from the outset purely with the intention to "do up" and sell on, then you are a property developer undertaking a trade and would be liable to income tax not CGT

go read a book?
Amazon
start with the basics?
https://www.gov.uk/capital-gains-tax/overview