CGT question

zerog

When buying a new build, the developer offers several "upgrades" such as putting in nice flooring or a better kitchen than what would come as standard. These are installed prior to the date of completion.

But these are not part of the property itself and not included in the purchase price nor any mortgage. They need to be paid for separately using cash, credit card etc.

Can these be counted as improvements, so that the cost can be subtracted from the "gain" if CGT is payable when the property is sold on?

fubar4164

They sound like fixtures to the property and would count as part of the property for CGT purposes.

laticsforlife

As they do become part of the fabric, then fubar is right, and the base price should include them, which still helps reduce the gain later on.

As they aren't part of the purchase price then keep the receipts/bills etc, or else any gain would look like it was done on wrong figures. you need to be able to show the additions to the fixed asset.

If you are living in it though, there may be no gain for CGT purposes, it's just your Principle Private Residence and will attract PPR relief.