Capital gains tax

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jimbobwalton

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Hi All myself and the wife are in the process of selling our investment property. Now I apid stamp duty and made tax returns each year. What I would like to know is in calculating the cgt I see that expenditure to enhance the value of a property is allowed. What does this include? I cant see to find any help on revenue site ..would it include cost of flooring , kitchen, carpets, painting dishwasher , fridge etc...?

Thanks
 
i think it relates to new kitchens, bathrooms, insulation, roof replacement, new windows, central heating, re-plastering, rewiring - that sort of thing - i.e. major stuff not things like painting the dishwasher !?
 
would it include cost of flooring , kitchen, carpets, painting dishwasher , fridge etc...?
Click to expand...

No. these are generally considered wear & tear expenses and can be written off against rental income over 8 tears

See [broken link removed] for more details expecially What exps can be claimed for wear & tear.
 
Thanks for the replies..I have incurred losses each year on the rental side...I assume there is no way possible to write these losses off against capital gains....we have no other investment properties
 
In the Capital Gains section of the Income Tax returns form there is a field for Unused Losses for prior year(s). Your rental losses would be included in this figure, so it is reducing your Chargeable Gain for CGT, I would have thought.....??
 
This field refers to capital losses only. As always, professional advice is recommended in relation to CGT on disposal of properties and other valuable assets. Interest, penalties and other sanctions may apply on underpayments, even when made in error.
 
I agree with Ubiq.. Simple errors here can have drastic consequences with both underpayment and overpayment of tax. Overpayment - no body wants this! Underpayment - If found say in ten years - possibly a 50% penalty and interest of approx 120% - nobody wants this also. Ring a qualified accountant in practice -each institute will provide you with a list. Get a quote for the work. Dont take the usual spiel of them charging for the amount of hours required to do the work. Get an actual amount! Check their experience with this kind of work and ask who will be doing your job and what their experience and qualifications are. I have 22 years in practice and I still, on occasion, have to use tax consultants.
 
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