Deductible Items from calculating the capital gain

We are in the process of selling a buy to let property for the first time. I know we can claim back the lawyers and estate agent fees but i have read elsewhere that you can claim stap duty as well. Is this correct? Not sure if it makes any difference but we are based in Scotland as is the property we are selling.

Finally, what about rewire/partial rewire - is this revenue expenditure? Thanks again

Hi When calculating capital gains on the sale of a property previously let out, obviously you can deduct the cost of repaying the mortgage on it to the lender. If you had borrowed some of the purchase price against your own private residence, can you also deduct the amount needed to repay that? So essentially, if 75% of purchase price came from a mortgage and 25% from an additional mortgage against your own home, presumably you can repay both loan amounts ie 100% of the purchase price when calculating your capital gains?? Thanks

Hi Naveen,
Yes stamp duty is an allowable deduction.
Thank you.

Hi Shazza117,
This is not an allowable expense for Capital Gains Tax.
Thank you. 

Not HMRC...Chicken1980, are you talking about repaying the capital? If so, no you cant deduct the cost of the capital, the gain is purchase cost less sales proceeds, how the purchase was funded isnt a factor in the calculation otherwise you would be doubling the cost to buy the property.

...that should be sales proceeds less purchase cost (wrong way round, though the figure is the same)...to confirm, no, repaying a mortgage is not a deduction from the gain because all its doing it financing the purchase price...

Hi,
How you financed the acquisition of the asset, whether by mortgage, cash payment, inheritance or a combination of different methods is errelevant. How you acquired the asset is not a factor in calculating capital gains on the disposal of residential property. The calculation is the disposal value minus allowable costs to determine if their is a gain or a loss. Allowable costs are the acquisition cost, solicitor's fees, estate angent's fees, auctioneer's feed, stamp duty, disposal costs etc.  
There is a calculator below, which you can use to work out if you have a gain or a loss.  
Tax when you sell property
Gains should be reported within 60 days of the completion date.  
Guidance on this is at the end of the calculator.
Thank you.

"There is a calculator below, which you can use to work out if you have a gain or a loss. "Tax when you sell property" Link appears to be broken...

Hi I have sold a house which was let out to a tenant. In order to sell it with vacant possession, I incurred legal costs associated with evicting the tenant. Can those legal costs be included in the "costs of disposal of an asset"? Or are those legal costs just the conveyancing costs associated with the sale?

Hi. I've just sold a property that was in the joint names of my disabled brother and myself. I was left half by my parents. I had to obtain a Court order from the Court of Protection to obtain permisssion to sell on my brother's behalf as I am his Deputy and the original order appointing me required me to obtain a Court order to sell. Can the cost of obtaining the Court Order be deducted in my brother's CGT computation?

Hi Julie,
Please find guidance here:
PIM2120 - Deductions: main types of expense: legal and professional costs: 
Thank you.

Hi ,
 

Please refer to : CG15250 - Expenditure: incidental costs of acquisition and disposal    for allowable costs . Thank you .