Capital Gains tax on sale of property

J

Julia5

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i.m selling a property in 2 years The tenant does not want to leave If I pay legal fees re eviction notice and go to court can I get tax credits off capital gains tax eg my legal costs will be at least 4 k .
Do I get tax credits for repairs carried out by a registered carpenter and plumber in the last 5 years I have all the receipts
The property was my ppr for 10 years
Does that have any effect on the Capital gains tax I pay when the house is sold
The legal fees could be 7k if the tenant does not leave and I have to get an eviction order from the court
I bought the property 22 years ago
 
AFAIK, the legal fees have no impact on any possible CGT bill.

Yes, the CGT bill will be affected by time spent as your PPR.


Normal repairs and ongoing maintanence - you would have already deducted these against your gross rental income in your annual tax return.
 
I read there's tax credit s for enhancement items expenses that add value to the property eg I intend to install 4 new doors and 5 windows to replace the old windows most of the windows are 50 years old and made of wood They are in bad condition with some cracks in the glass panes

Do I get tax credits for legal fees eg the cost of selling the house. Conveyancing 1k approx
So I'll have to spend at least 6 k to replace old windows and doors after the tenant is gone eg I will have no rental income in the next year
I want free access for painters and carpenters
to do work any time
I presume new pvc triple glazed and new doors will add value to the property
 
Yes, any legal costs involved with the purchase and sale can be included in the costs of acquistion and sales proceeds for CGT purposes.
 
Protocol said:
I presume that legal fees associated with removing tenant can't be used in CGT calculations. Am I wrong?
Click to expand...
I wouldn't presume anything of the sort and I'd be encouraging the OP to research it, on the basis that the cost of an eviction to facilitate a sale could, at least on the grounds of logic alone, count as an incidental cost of the sale.
 
Would installing new doors with locks and New pvc windows not enhance the value of the property considering the windows are old made iof wood and not in good condition
In regards to tax credits for Enhancement that adds value to the property

The revenue website says anything that Adds value to the property is an Enhancement
The windows are old and need repairs to even open properly
 
If I leave the windows and as they are now I doubt the bank surveyor would pass the property as of a minimum standard dwelling for a mortgage so I would have a problem getting anyone to buy the property unless it's a builder doing renovation most buyers need a more bank loan to buy a house in urban areas
 
Home improvement could be tax deducted in your rental income tax

But I can't see how it affects cgt

You will get a benefit in getting a better price when you sell
 
When the tenant
is gone I can make more repairs and instal
new windows I won't have any rental income
Eg I won't be coming expenses against
rental income I don't want to be a landlord
I want to carry out repairs to make the property morw attractive to potential buyers and to make it more evnergy efficient when you say claim 2o per cent per year do you mean 20 per cent when I actually own the house before it's sold
 
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