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Posted Mon, 12 Feb 2024 21:00:32 GMT by
Hi, hope you are well please could you help me with the following query. I am selling a second home which I rented out and have never lived in. I purchased it in 2009 and improved it from its initial stage and took videos showing the improvements made I have some receipts ie for boiler improvement and new electrical work but I do not have others I have visual evidence of the improvements ie changing a flat roof to a pitched tiled roof , removing an old kitchen and adding a new kitchen, and have the amount it cost to do these jobs written but no actual receipts Can these visual representations along with my dated paperwork be used to help reduce my capital gain or won't this be acceptable? One professional has said no you require receipts another has said as long as you have evidence that the work has been carried out ie before and after photographs or video you can claim any advice gratefully received L
Posted Fri, 16 Feb 2024 08:39:44 GMT by HMRC Admin 20 Response
Hi L,
To claim capital allowances to offset any capital gain, requires evidence in the form or receipts, as they quantify the costs of the enhancement.  
Photographic evidence will show that improvements were made, but do not prove the financial cost of the improvement or whether they are qualifying or not.  
An individual owner’s own labour on alterations and improvements to an asset do not qualify for relief.  
CG15180 - Expenditure: enhancement expenditure advises what qualies as enhancement expenditure and what the expenditure that can be allowed is restricted to.
CG15160 - Expenditure: categories of allowable expenditure).  
Please also have a look at PIM2023, for guidance on what capital expenses are.  PIM2030 - Deductions: repairs: is it capital?.
Thank you.

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