CGT payable on rented property

modestus

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Hi
Could anyone confirm whether building renovations are allowable for CGT calculation purposes in the year of the property being sold ?

Also am I right in saying that for CGT purposes the first year of renting the property is allowable for CGT purposes and that notwitstanding that, the mutiplier is calculable from the year of acquisition of the property?

If the property is to be sold in 2005 the calculation is the Acquistion Price multiplied by Multiplier for year of acquisition less allowance due for period when property was a PPR.This calculation is then subtracted from the sale price to give CGT payable? Is it as simple as that ?

Also are periods of vacant tenancy allowable as a set off against CGT?

Finally I assume that CGT is payable as this is a "capital" gain notwithstanding that fact that up to Income Tax returns have been made and no tax is payable due the fact that I have Section 23 alowance for another property ?

Any advice appreciated
 
There is some important information missing here.

You can have one principal private residence at any one time. If this property was never occupied by you then the capital gain is taxable regardless of where it was let or not let, allowing for the indexation and all that. (Which ended in 2003).

Also any expenditure on repairs etc is either deductible against rents (an income tax deduction in effect) or is 'enhancement expenditure' (not allowed for income tax computation) so it is one of the other but not both.

I have not gone into the rest..
 
Thanks for that DR Wizard -to answer your query the property was occupied as a PPR from 1992 to 1997 and has been rented since 1997 to date -does that enable you to answer the query ?
thanks
 
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