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Posted Mon, 24 Jul 2023 14:08:48 GMT by
We inherited a property which had a large amount of hoarded clutter inside the house and a very overgrown garden containing significant junk, dangerous overhanging trees etc. The Probate valuation by a RICS surveyor states that the valuation "takes account of the current condition of the property, the condition of the garden and the extent to which general clearance and garden clearance is required". This house clearance and remedial garden work was completed at a cost of approx. £10,000 and the house was sold. I would like to offset this cost against the Capital Gain from the sale, on the basis that this work increased the value of the property from that of the probate valuation, as opposed to being a cost for work necessary to "maintain" the probate valuation (e.g. gardening work to manage plant growth whilst waiting for the sale etc.)? Do you agree that this approach is reasonable? Thanks.
Posted Tue, 01 Aug 2023 13:07:10 GMT by HMRC Admin 32 Response
Hi,

As this would be seen as enhancement as the value of the property has incereased, this expense would be allowed provided you have receipts to support it.

Thank you.

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