Section 20 Works offset against CGT?

I have owned a leasehold flat for several years now and during those years the landlord has issued numerous section 20's to improve the overall building. Can these costs be offset against CGT? Thanks.

Hi
In general, repairs and maintenance costs are considered reveneue expenses and can only be set against the profit from rental income.  
If this property is your main residence, then you can claim private residence relief, to offset any gains that may arise on disposal of the property. Improvements that increase the value of the property by adding something that was not there before could be considered a capital expense and set against any gains that may arise.

It's not our main residence but we did purchase the property at a lower price as it was 'run down' and knowing that there was going to be high section 20 demands. Now the works are complete the property is now worth much more as all the work is complete. In that case would we be able to claim any of the section 20 costs against CGT? Thanks.

Hi,

If a property is acquired in a dilapidated condition, expenditure incurred in repairing it and putting it into a fit state for letting (including expenditure on decorations) may be inadmissible as a deduction for Profits of a Property Business, see PIM2020.

For Capital Gains purposes, however, such expenditure as cannot be deducted in computing income may be regarded as allowable expenditure under TCGA92/S38 (1)(b).

This is confirmed at:

CG15200 - Expenditure: enhancement expenditure: demolition costs

Thank you.