CGT on second home. Not kept all receipts

ouraggie

Hi. Am about to sell second home and stand to have about £60k equity. Have owned it for 13 years and during that time I have spent about £15k on improving it eg double glazing. I was rather clueless till recently about the need to keep all the receipts.
Will HMRC want to see some proof or will entries on bank statements be enough (assuming I can obtain these).
Thanks 

Jeremy535897

It depends on what they ask for. The likelihood is that your figures will just be accepted. Double glazing is unlikely to be regarded as an improvement for these purposes though. See:
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim46925

To qualify for a capital gains tax deduction, an improvement must be incurred on the asset for the purpose of enhancing its value, and be reflected in the state of the asset at the date of its disposal.

ouraggie

Thanks.
The original windows probably detracted from the value. They were ancient,discoloured, cheap and half the panes were permanently misted up!

sheramber

Would double  glazing not be a repair and claimed as an expense against any income form the property?
 Was the second home rented out?
 

Jeremy535897

ouraggie said:

Thanks.
The original windows probably detracted from the value. They were ancient,discoloured, cheap and half the panes were permanently misted up!

No doubt, but that does not necessarily make the new ones improvements from a tax law point of view. The link I referred to is HMRC's take on the issue for income tax purposes, so is not necessarily their view for capital gains tax, although obviously you cannot claim the same amount twice. If you claimed no tax relief against income for the new windows, you could try claiming them as an improvement, so long as you clearly spell out on the tax return the precise nature of the improvement.

This thread gives further thought on the issue of what an improvement is:
https://forums.moneysavingexpert.com/discussion/6084861/cgt-house-sale-home-improvements-question

ouraggie

sheramber said:

Would double  glazing not be a repair and claimed as an expense against any income form the property?
 Was the second home rented out?







 

Hi. No, not rented out. Just our seaside bolt hole. Thanks. 

ouraggie

Jeremy535897 said:

ouraggie said:

Thanks.
The original windows probably detracted from the value. They were ancient,discoloured, cheap and half the panes were permanently misted up!

No doubt, but that does not necessarily make the new ones improvements from a tax law point of view. The link I referred to is HMRC's take on the issue for income tax purposes, so is not necessarily their view for capital gains tax, although obviously you cannot claim the same amount twice. If you claimed no tax relief against income for the new windows, you could try claiming them as an improvement, so long as you clearly spell out on the tax return the precise nature of the improvement.

This thread gives further thought on the issue of what an improvement is:
https://forums.moneysavingexpert.com/discussion/6084861/cgt-house-sale-home-improvements-question

Thanks again. I'll have a read through of your link.