In 2006 I bought an empty detached site in a housing estate for 70k . I borrowed 150k to build the house which was needed to pay contractors, buy building materials etc.
The house has been rented since it was finished in 2007.
I have paid tax every year on the rent received.
I sold the house recently for 300k and was advised that only the site cost of 70k can be offset against CGT along with the usual expenses. Solicitors, auctioneers fees etc.
I was told that the cgt liability is 66k.
Surely the cost of the site is not the cost of the house. It actually cost me 220k in total.
Please advise if the construction costs can be offset.
Thank you.
The house has been rented since it was finished in 2007.
I have paid tax every year on the rent received.
I sold the house recently for 300k and was advised that only the site cost of 70k can be offset against CGT along with the usual expenses. Solicitors, auctioneers fees etc.
I was told that the cgt liability is 66k.
Surely the cost of the site is not the cost of the house. It actually cost me 220k in total.
Please advise if the construction costs can be offset.
Thank you.