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Posted Tue, 30 Jan 2024 01:02:55 GMT by
Hi, I have recently sold a property I bought to live in with my ex-wife, and then rented out for a period afterwards. I have therefore calculated my PRR and deducted further costs such as solicitor fees, marketing fees etc. when calculating my taxable gain. However, during my ownership of the property I paid my ex-wife a sum to retain the property in my name only through a settlement agreement, i.e we initially joint owned the property when we both lived there, but latterly only I did due to payment of said sum - this is documented in a settlement agreement. Would this sum be deductible along with solicitor fees etc. given it is a direct cost in me keeping the property? Also, the property was upgraded with new windows during time of ownership - does this qualify as a deductible expense too? I can only see examples such as new bathroom / kitchens / extensions etc, but no mentions of upgraded windows. Advice on these two points much appreciated. Thanks
Posted Thu, 01 Feb 2024 11:39:31 GMT by HMRC Admin 25
Hi taxman123,
The fees must have been incurred wholly & exclusively for the purposes of acquisition or disposal:
CG15250 - Expenditure: incidental costs of acquisition and disposal
So the cost of drawing up the settlement agreement would not be allowable.
Please see:
CG15180 - Expenditure: enhancement expenditure
For enhancement costs and what may be allowed. 
Thank you. 


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