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Posted Mon, 18 Mar 2024 16:52:35 GMT by Benson123# Patrick
I have replaced the kitchen/bathroom/patio and UPVC windows in a rental property. These have all been declared in my annual SA submission as and when they were completed. My question is whether or not these costs will count separately when calculating CGT exposure when I come to sell the property, probably later this year? My P&L on the rental property also carries forward a loss which I assume can be set against CGT. Is this correct?
Posted Fri, 22 Mar 2024 12:03:49 GMT by HMRC Admin 25 Response
Hi Benson123# Patrick,
This is a grey area and it is largely a question of fact and degree in each case whether expenditure on a property leads to an improvement.
Please review the guidance at:
PIM2030 - Deductions: repairs: is it capital?.
To help determine if the expenditure is revenue or capital in nature.
Revenue expenses are set against the rental income.
Captial expenses are set against capital gains.
The expenditure can only be one or the other, not both.
Thank you. 

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