Capital Gains - hopefully an easy question that you can help me answer :-)

fusar

Hi there,

I am in the process of selling a commercial property which I will have to pay Capital Gains Tax on. The property has been improved and I think this is reflected in its sale price. Apparently, I can claim these "renovation" costs against my capital gains payment. My question is, do I need receipts and invoices for all costs claimed or can I write approximate amounts - as I don't think I have kept the receipts for all the materials and work undertaken, but do have some of them?

Also, the property has been standing empty since we bought it, as our plans for it went a bit "pear shaped". It is a commerical property and I have been paying business rates on it, could I claim these back as costs as well as the interest on the mortgage?

Thank you
Fusar

silvercar

business rates and mortgage interest would be ongoing expenses and allowed against income tax AFAIK.

Renovation costs should be allowable against CGT if they improve the property. You would include details on your tax return with your calculation, the IR could ask for receipts, whether they would allow them without receipts I don't know, you could ask your local tax office.