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Posted Wed, 29 Nov 2023 20:12:00 GMT by
Hi, I'm considering purchasing a second property that requires a lot of work doing to it to make it habitable. At the moment, I'm unsure whether I will move into it as my primary residence, selling my first house or re sell once the work is complete. My question is this... the current owners of the house in question have ripped out the kitchen, half the bathroom, they've demolished walls, both brick and stud and removed a lot of plaster from both the walls and cielings. They've also removed the central heating system and pulled out the majority of the electrical wiring, lights ect. They have also decimated the garden leaving it to go wild with weeds and rubbish. It is basically a shell. It is currently up for auction as a the owners have financial difficulties and can't complete the renovations. If I where to go ahead and purchase the property and renovate it, then sell it on, could I class installing a new kitchen, bathroom and all the other associated building costs like installing stud walls, a rewire, installing central heating and plastering throughout and tidying up the garden as capital expenditure to make the property habitable and claim it against any CGT levied on the property. Thanks
Posted Fri, 01 Dec 2023 09:51:13 GMT by HMRC Admin 25 Response
Hi Eddie3625,
Yes.
Please see guidance here:
CG15180 - Expenditure: enhancement expenditure
Thank you. 
 

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