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Posted Thu, 30 Nov 2023 15:55:05 GMT by john smith
I have just sold my old house of residence to my sitting tenants, I had rented this house out for the last 4 years, I became a landlord basically, because when I put an offer in for the house I now live in, the offer was accepted on the condition that I wasn't in a chain, so instead of selling I raised capital by remortgaging, I then rented out. As a consequence I had to pay higher stamp duty for the house I now live in, as it was classed as a second home, and because I didn't sell my old house within the 3 year period I have now lost that additional stamp duty (around £7000) I realise this is a bit of a long shot, but can I claim CGT relief (i.e. reduce my capital gain figure by £7000) for that cost, even though technically, it is associated with another property?
Posted Mon, 04 Dec 2023 11:53:54 GMT by HMRC Admin 5
Hi

Except where there is specific provision to the contrary, allowable expenditure is restricted to sums for:
- acquiring the asset
- creating the asset
- enhancing its value
- establishing, preserving or defending title to or rights over the asset - incidental costs of aquisition or disposal                                                  
The Stamp Duty paid when you acquired your main residential property does not fall into any of these categories, so it would not be an allowable CGT expense.                                                
Please take a look at CG15160 - Expenditure: categories of allowable expenditure        

Thank you             
 

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