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Capital gains help please

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  • BB.
    BB. Posts: 91 Forumite
    Part of the Furniture 10 Posts Name Dropper Photogenic
    Hi Jeremy,

    That makes a lot sense, thank you for your honesty. Would you mind elaborating on seeking redress? Does that mean that if they gave me wrong advise, they will be liable as much as me? I don’t mind paying extra tax if it comes to it, I am just really worried about getting a big fine for submitting claims I can’t back with receipts. I am clearly very inexperienced in this field so any advice is appreciated.
    Btw the improvements were made in 2011/12 whilst my bank statements go back only to 2017 so I cannot use them. I only have a couple of receipts, one being for the purchase of the new kitchen. 
    Thank you! 
  • Jeremy535897
    Jeremy535897 Posts: 10,733 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    edited 8 December 2024 at 7:59AM
    BB. said:
    Hi Jeremy,

    That makes a lot sense, thank you for your honesty. Would you mind elaborating on seeking redress? Does that mean that if they gave me wrong advise, they will be liable as much as me? I don’t mind paying extra tax if it comes to it, I am just really worried about getting a big fine for submitting claims I can’t back with receipts. I am clearly very inexperienced in this field so any advice is appreciated.
    Btw the improvements were made in 2011/12 whilst my bank statements go back only to 2017 so I cannot use them. I only have a couple of receipts, one being for the purchase of the new kitchen. 
    Thank you! 
    If they claim something that you have accurately described to them, and HMRC say they are wrong, and you are charged interest and/or penalties, I would expect them to make some contribution. Bear in mind that your only "loss" is the interest and penalties, as you would have had to pay the extra tax at the start if the computation filed was correct. Even the interest is debatable as you would have had the money for longer, although the HMRC interest rate is probably higher than what you gained by that.
    I know HMRC only require you to keep bank statements for about six years, but I prefer Martin Lewis's advice, which is never throw bank statements away. Nor will I comment on the kitchen, which, depending on what the expenditure was and what it replaced, may or may not be an improvement.
  • BB.
    BB. Posts: 91 Forumite
    Part of the Furniture 10 Posts Name Dropper Photogenic
    Many thanks Jeremy for this advice and in  general helping the MSE community! 
    I have one more question for you all. Is Early repayment charge of the mortgage a deductible expense when calculating CGT? 
    Thank you 
  • Jeremy535897
    Jeremy535897 Posts: 10,733 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    edited 9 December 2024 at 5:57PM
    BB. said:
    Many thanks Jeremy for this advice and in  general helping the MSE community! 
    I have one more question for you all. Is Early repayment charge of the mortgage a deductible expense when calculating CGT? 
    Thank you 
    Definitely, 100%, not. The mortgage is irrelevant.
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