Evidence of How much have you spent on improvements for CGT

ProDave

Nobbie1967 wrote: »

I thought CGT was only payable for the period the house was rented out, so the base value would be 2013 and therefore work in 1992 would be irrelevant. Have I got this wrong?

Unfortunately yes you have.

They take the value when you bought it and the value when you sell it and work out the monthly gain. There is no mechanism to even allow for different rates of growth at different times.

Tax due is based on the monthly rise and how long it was let for, less allowances already mentioned that will reduce how many months of CGT is due.

Then there is your personal CGT allowance, double that if jointly owned as you are each liable for half the gain.

I suspect not much CGT will be due.

kinger101

ProDave wrote: »

When we sold our 2 former BTL's I submitted the details in the form of a spread sheet. That just listed a single figure for the refurbishment cost of each prior to sale. HMRC accepted that figure without question and without asking for any proof.

Technically, they didn't query it. It's not the same as accepting it. The onus is on the taxpayer to provide a correct return. You're not expected to present receipts with the return, but you later may need an audit trail of what the expenditure is, and to come up with a reasonable explanation of why you've treated it as capital expenditure.