CGT allowances

[john luc]

I have a house that is not my principle home and had a valuation of €100,000 at the time I got it. Paid all relevant taxes at the time as well. After receiving it I have done substantial renovations as the house was in a poor state and so have increased the value of the house. I am not going to be selling this house anytime soon but wonder how best to record my expense on this house to help offset any future CGT.

 

[jpd]

You need to keep a record of the expenditure including invoices and receipts so that you can justify the enhancement expenditure

When the house is eventually disposed of via a sale or transfer, the purchase cost and enhancement expenditure can be deducted from the sale proceeds to calculate the net gain or loss. If you are audited, you will need to be able to prove that the amounts you claimed were actually spent